36.11 A The following information concerns Hurmey plc in relation to its year ended 31 July 2020:

Part 8 Partnership Dr Cr Trial balance as at 28 February 2020 (continued): 22,600 24,310 General reserve Bad debt expense Share premium Allowance for doubtful debts at 1 March 2019 Issued ordinary share capital Rent received Directors' remuneration 46,000 4,093 62,000 7,070 78,890 188,575 1,727 499 1,727,499 Retained profits at 1 March 2019 Additional information: The inventory was counted at 28 February 2020 and was valued at a cost of 44,201. Depreciation is to be charged at the following annual rates: Plant & equipment: Motor vehicles: 15% (reducing balance) (straight-line) (ii) The amount shown for rent on the trial balance includes a payment of 6,120 which represents (iv) Motor expenses incurred for which no invoices have yet been received amount to a total of (i) 20% twelve months' rent to 31 October 2020. (v) The allowance for doubtful debts is to be changed to 5 % of accounts receivable (vi) The loan note interest is paid in two annual instalments and the second instalment needs to be E5.661. vin) The corporation tax charge on the profit for the year is estimated to be 40,000. (viii) The directors wish to transfer 7,000 to general reserve. provided for. Required: Prepare an income statement for the year ended 28 February 2020 as well as a balance sheet as at that date. Both statements should adopt an 'internal use' format. 36.11A The following information concerns Hurmey plc in relation to its year ended 31 July 2020: Dr Cr Trial balance as at 31 July 2020: 53,010 113,856 Inventory as at 1 August 2019 Wages & salaries Accounts payable 85,810 2,928 Returns outwards 19,757 20,479 523,735 105,600 Rent Utilities Purchases Accounts receivable Sales Machinery: 1,138,555 465,840 278,580 at cost Vans: at cost 105,120 63,900 accumulated depreciation at 1 August 2019 accumulated depreciation at 1 August 2019 Machinery: Vans: Dividends paid 51,440 2,435 Cash at bank 7% loan notes 2025-2027 Loan note interest paid General reserve Bad debt expense Share premium 175,000 6,125 34,100 25,174 77,000 6 ait command SkinAT command option HB HB Chapter 36 Company accounts Cr Trial balance as at 31 July 2020 (continued): 22,600 Dr Cr Allowance for doubtful debts at 1 August 2019 46,000 Premises: at cost Premises: accumulated depreciation at 1 August 2019 Ordinary shares of 50p each 4% preference shares of 1 each Commissions received Directors' remuneration Retained profits at 1 August 2019 4,237 4,093 62,000 7,070 658,600 171,236 67,000 54,000 7,958 88,575 27,499 91,080 428,867 2,415,711 2,415,711 Additional information: The inventory was counted at 31 July 2020 and was valued at a cost of 53,661. () (iD Depreciation needs to be charged at the following rates per year: Premises: Machinery: Vans: (straight-line) (straight-line) (reducing balance) 2% esents 20% 30% (ii) The amount shown for rent on the trial balance includes a payment of 8,100 which represents twelve months' rent to 30 November 2020 (iv) Utilities charges incurred for which no invoices have yet been received amount to a total of 6,757. The audit fee has been agreed at 18,000 and this needs to be provided for. tal of o be (v) (v) The allowance for doubtful debts is to be set at 5% of accounts receivable. (vii) The interest on the loan notes is paid in two instalments each year, and the second instalment needs to be accrued. (viii) The corporation tax charge on this year's profit is estimated to be 33,000. (ix) The directors want to transfer 8,000 to general reserve. s at Required: An income statement for the year ended 31 July 2020 and a balance sheet as at that date, both in an internal use format (not for publication). 20: The trading section of the income statement for Brogia Ltd for the year ended 30 April 2019 36.12 has been completed. It showed a gross profit of 171,360. The following balances remained in the books of account of Brogia Ltd at April 2019: 10 28 60,000 6,840 98,240 1,800 147,800 84,090 120,000 48,800 48,560 20,000 89,309 23,800 Ba repayable 2028 est assets enses es of 20p each depreciation at 1 May 2018 ings les ables