36.9A The following is the trial balance of Tully Ltd as on 31 December 2020: Dr Cr Share capital issued: ordinary shares 20p 375,000 Accounts receivable and accounts payable 169,600 74,900 Inventory 31 December 2019 81,300 Bank 17,900 Premises at cost 265,000 Machinery at cost 109,100 Motor vehicles at cost 34,700 Accumulated depreciation at 31.12.2019: Premises 60,000 Machinery 41,400 Motor vehicles 18,200 Sales 975,600 Purchases 623,800 Motor expenses 4,300 Repairs to machinery 3,600 Sundry expenses 2,900 Wages and salaries 241,500 Directors' remuneration 82,600 Retained profits as at 31.12.2019 31,200 General reserve 60,000 1,636,300 1,636,300 Given the following information, you are to draw up an income statement for the year ending 31 December 2020, and a balance sheet as at that date: () Authorised share capital: 500,000 in ordinary shares of 20p. Un Inventory at 31 December 2020 102,400. (11) Motor expenses owing 280. (iv) Ordinary dividend proposed of 5 per cent. (1) Transfer 7,500 to general reserve. (vi) Provide for depreciation: motor vehicles and machinery 20% on cost; premises 5% on cost. V 36.11A The following information concerns Hurmey plc in relation to its year ended 31 July 2020: Trial balance as at 31 July 2020: Dr Cr Inventory as at 1 August 2019 53,010 Wages & salaries 113,856 Accounts payable 85,810 Returns outwards 2,928 Rent 19,757 Utilities 20,479 Purchases 523,735 Accounts receivable 105,600 Sales 1,138,555 Machinery: at cost 465,840 Vans: at cost 278,580 Machinery accumulated depreciation at 1 August 2019 105,120 Vans: accumulated depreciation at 1 August 2019 63,900 Dividends paid 51,440 Cash at bank 2,435 7% loan notes 2025-2027 175,000 Loan note interest paid 6,125 General reserve 34,100 Bad debt expense 25, 174 Share premium 77,000 Trial balance as at 31 July 2020 (continued): Dr Allowance for doubtful debts at 1 August 2019 4,237 Premises: at cost 658,600 Premises: accumulated depreciation at 1 August 2019 171,236 Ordinary shares of 5Op each 67,000 4% preference shares of 1 each 54,000 Commissions received 7,958 Directors' remuneration 91,080 Retained profits at 1 August 2019 428,867 2,415,711 2,415,711 Additional information: 6) The inventory was counted at 31 July 2020 and was valued at a cost of 53,661. (in Depreciation needs to be charged at the following rates per year: Premises: (straight-line) 2% Machinery: (straight-line) 20% Vans: (reducing balance) 30% Cin) The amount shown for rent on the trial balance includes a payment of 8,100 which represents twelve months' rent to 30 November 2020. (i 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. (VD) The allowance for doubtful debts is to be set at 5% of accounts receivable. (vin) The interest on the loan notes is paid in two instalments each year, and the second instalment needs to be accrued. (viiiThe corporation tax charge on this year's profit is estimated to be 33,000. (1x) The directors want to transfer 8,000 to general reserve. 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). Question 1 Consider the following data being taken out of the trial balance of GPA Ltd, as at 31 March 2017: Ordinary shares of each Preference shares of Si cach 8% debentures General reserve Retained profits Motor vehicles al cost Machinery at cost Accumulated depreciation - vehicles Accumulated depreciation - machinery Stock at 31 March 2016 Debtors Creditors Cash at bank Purchases Sales Wages & salaries General expenses Directors remuneration Rent and rates Debenture interest Interim dividend paid - Ordinary shares Interim dividend paid -10% Preference shares Insurance Total D C $20,000 10,000 $4.000 89,700 145,623 175.000 196.000 109 SOO 127.800 94.403 225.640 91.661 566.662 630,260 73,740 84,608 100.807 240 9,400 500 25.720 NOK 541 544 The following additional information relating to GPA Ltd. is also available: 1. Stock at 31 March 2017 was valued at $39,200. 2. Machinery costing S43,600, which $28,280 depreciation had been provided, was sold for $21,560 during the year. This transaction has not been recorded because the proceeds of sale has not yet received at year end. 3. There was no purchase of fixed assets during the year. Depreciation on motor vehicles and machinery are provided on straight-line basis on cost at the rate of 10% p.a. and 5% p.a. respectively. 4. Accrued Rates amount of $5,680 and prepaid insurance $9,800 were in the year. 5. The estimated tax expenses for the year amounting to $6,540. 6. The directors have decided to increase the general reserve up to $90,000 in total REQUIRED: Prepare a Statement of profit or loss and other comprehensive income for the year ended 31 March 2017, a Statement of changes in equity and a Statement of financial position as at that date