1)What amount of Trade receivables and Bad debts written-off should appear in the financial statements of the company for the year ended 31 December 2018 (in 000)? Subsequent to drawing up the trial balance, the company has been informed that a major customer owing 40,000 has gone into administration, and Santa ple will receive only 25% of the amount owing. Santa ple has also decided to change its provision for doubtful debts to 5% of the remainder of receivables balances. 2)What will be the net book value of delivery vans as at 31st December 2018 (in 000)? In 2018 the company sold a delivery van for 25,000 in cash. The vehicle was purchased in 2017 for E30,000. The cash received from the sale was paid into the business bank account and credited to disposal proceods Depreciation is to be provided on the non-current assets using the following annual rates: Land Buildings Delivery vans nil 1% per year on a straight line basis 20 per year on a reducing balance hasis A full year's depreciation is provided in the year of acquisition and no deprociation is provided in the year of disposal Depreciation charges and profits or losses on asset disposals are allocated 50% to distribution costs and 50% to administrative expenses 3)What is the cost of sales of the company for the year ended 31st December 2018 (in 000)? O The inventory was counted on 31.12.18 and valued, at cost, at 72,000. Includod in this were some damagod goods which had cost 3,000 and which would normally be sold for 5,500. However, they were sold in a clearance sale in January 2019 for E1,000. (ii) A customer notified the company on 28.12. 18 that be was returning goods with the wrong specification for which he had been invoiced the sum of 16,000. The returmed goods were received into the shop on 30.12.18 on which date the accountant was notified and the returm was recorded in the accounting records. The goods had cost Santa ple 2,500 and were returned in good condition. 4)Santa's financial result on disposal of equipment for the year ended 31st December 2018 (in 000): In 2018 the company sold a delivery van for 25,000 in eash. The vehicle was purchased in 2017 for 30,000. The cash received from the sale was paid into the business bank account and credited to disposal procceds. Depreciation is to be provided on the non-curment assets using the following annual rates: Land Buildings Delivery vans nil 1% per year on a straight line basis 20% per year on a reducing balance basis A full year's depreciation is provided in the year of acquisition and no depreciation is provided in the year of disposal. Depreciation charges and profits or losses on asset disposals are allocated 50% to distribution costs and 50% to administrative expenses.

For the following questions use this Trial Balance The following balances have been extracted from the books of Santa plc for the year ended 31st December 2018, before any adjustments have been made. Dr Cr 000 000 120 280 80 65 23 74 92 5.6 3 7 23 Land Buildings at cost Buildings, accumulated depreciation at 1 January 2018 Delivery vans at cost Delivery vans, accumulated depreciation at 1 January 2018 Inventory at 1 January 2018 Trade receivables Provision for bad debts at 1 January 2018 Prepayments at 1 January 2018 Bank balance Trade payables 10% debenture loan repayable in 2030 Ordinary share capital of 0.5 each Share premium Retained profits at 1 January 2018 Disposal proceeds Sales revenue Purchases Administrative expenses Camiage-in Distribution costs Rent Interim dividend paid 50 70 10 101.4 25 1095 621 96 3 109 21 6 1490 1490