101ACC-R SECTION A: Question 1-YOU MUST ANSWER THIS QUESTION You are given below the trial balance of Tetra plc at 30 June 2020. 3% Debentures (2017-2040) Allowance for doubtful debts at 1/7/19 Bad debts Bank Directors remuneration '000 000 600 24 64 140 376 Discounts received 37 Equipment at cost: Administration 700 Equipment at cost: Production 670 Equipment at cost: Selling and distribution Equipment: Accumulated depreciation at 1/7/19 210 223 Interest paid Inventory at 1/7/19 460 Motor vehicles at cost 700 Motor vehicles: Accumulated depreciation at 1/7/19 200 Motoring expenses 25 Ordinary dividends paid 80 Ordinary share capital, 1 shares 264. Other running costs 282 Purchases and sales Rent and rates Retained earnings Share premium Trade payables 3,084 6,578 231 594 301 Trade receivables and payables Wages and salaries Additional information at 30 June 2020. 750 630 1,950 9,591 9,591 1. The inventory count on 3 July 2020 established the cost of inventory at 30 April 2020 as 277,000. Included in this inventory were items bought for 2,000 in August 2019 which were now considered unsaleable. 11. Annual depreciation is charged on the straight line basis for equipment at 10% per annum and on the reducing balance basis for motor vehicles at 15% per annum. Continued Page 3 of 10 101ACC-R III. At 30th June 2020 the directors wish to provide for the following: Unpaid wages and salaries of 75,000 Prepaid rent and rates of 16,000 IV. V. The remaining debenture interest for the year Doubtful debts of 4% of outstanding receivables Income tax for the year of 29,000 Rent and rates, wages and salaries and other running costs should be apportioned between cost of sales, administrative expenses and selling and distribution costs in the ratio 1:3:1 The directors wish to transfer 100,000 to the general reserve. Requirement: Use the information above to prepare for Tetra plc, in a format suitable for publication, the following: i. An income statement for the year ended 30th June 2020 with all expenses classified by function (29 marks) ii. A statement of changes in equity for the year ended 30th June 2020 (6 marks) iii. A statement of financial position at 30 June 2020 (15 marks) SECTION A: Question 1-YOU MUST ANSWER THIS QUESTION You are given below the trial balance of Tetra plc at 30th June 2020. 3% Debentures (2017 - 2040) Allowance for doubtful debts at 1/7/19 '000 Page 2 of 10 101ACC-R '000 600 24 Bad debts Bank Directors remuneration Discounts received Equipment at cost: Administration Equipment at cost: Production Equipment at cost: Selling and distribution Equipment: Accumulated depreciation at 1/7/19 Interest paid Inventory at 1/7/19 Motor vehicles at cost 64 140 Motor vehicles: Accumulated depreciation at 1/7/19 Motoring expenses Ordinary dividends paid Ordinary share capital, 1 shares Retained earnings Other running costs Purchases and sales Rent and rates Share premium 3,084 376 37 700 670 210 223 9 460 700 2001 25 80 264 282 6,578 231 594 301 Trade payables Trade receivables and payables Wages and salaries 750 630 1,950 9,591 9,591 Additional info ation at 20th June 2020 Additional information at 30 June 2020. 11. 1. The inventory count on 3 July 2020 established the cost of inventory at 30 April 2020 as 277,000. Included in this inventory were items bought for 2,000 in August 2019 which were now considered unsaleable. Annual depreciation is charged on the straight line basis for equipment at 10% per annum and on the reducing balance basis for motor vehicles at 15% per annum. Continued i. 101ACC-R IV. At 30th June 2020 the directors wish to provide for the following: Unpaid wages and salaries of 75,000 Prepaid rent and rates of 16,000 The remaining debenture interest for the year Doubtful debts of 4% of outstanding receivables Income tax for the year of 29,000 Rent and rates, wages and salaries and other running costs should be apportioned between cost of sales, administrative expenses and selling and distribution costs in the ratio 1:3:1 V. The directors wish to transfer 100,000 to the general reserve. Requirement: Use the information above to prepare for Tetra plc, in a format suitable for publication, the following: An income statement for the year ended 30th June 2020 with all expenses classified by function (29 marks) ii. A statement of changes in equity for the year ended 30th June 2020 (6 marks) iii. A statement of financial position at 30th June 2020 (15 marks)