Ae Aveluation reserve 67. Dehenture liman. 2029 Provision for doshtiul slots Plant de machithery: cost Plant of machimery: cost Paterime actamatafed depeciation loferim dividend paid on ordinary shares faterim dividend paid on prefetence shares Corporation Tax Debenture interent. lonerfory at 1,1,22 Trade feeefir tes Haak aceo. Prepaid insurance at 1-1.22 Accrucd electricity at 1.1 .22 Trade payables Non-current asset disposal procecds Satas Purchases Wages and salaries Insuramce Travel and entertainment Professiortal fees Electricity The fand is be be revalied io 5230500 . 3. Prepaid insurance at 31 Devenber 203 is $1,700 whele accrued pleitule wy, at that Hale, is 53,$00. 4. An iem of plaet and ma hieery, the ont of whili hat teen 35 gio and whone get book value was $2,300, had been wold in the year for $1000 : No mecouraine entries relatinig to the dieposal have bees made in the conropany's bocks of aceneme ofher than in relation to the diyposal preceeds. 5. Depreciation on fixed assets is to be charged as follown. freebold land: no depreciation is charfed freeboldland:buildfings:nodepreciationischarged1%perannamceastraight-linebasis plant \& machinery; 30% per annum on a teducing balance basis 6. A bad deht of 53,000 is to be writien olf. 7. The provision for bad debts is to be revised to 4% of trade receivables. 8. A final dividend of 3c per ordinary share is to be proposed bv the directors. Required: (a) Repore an income statement for the year endad 31 Decenber 2002 , a tancenen of (b) A company is required to disctose its accounting policies in its pubistred accouns. Why you believe such disclosure is required. AC1025 PRINCIPL.ES OF ACCOUNTING Page 9 of 18 Ae Aveluation reserve 67. Dehenture liman. 2029 Provision for doshtiul slots Plant de machithery: cost Plant of machimery: cost Paterime actamatafed depeciation loferim dividend paid on ordinary shares faterim dividend paid on prefetence shares Corporation Tax Debenture interent. lonerfory at 1,1,22 Trade feeefir tes Haak aceo. Prepaid insurance at 1-1.22 Accrucd electricity at 1.1 .22 Trade payables Non-current asset disposal procecds Satas Purchases Wages and salaries Insuramce Travel and entertainment Professiortal fees Electricity The fand is be be revalied io 5230500 . 3. Prepaid insurance at 31 Devenber 203 is $1,700 whele accrued pleitule wy, at that Hale, is 53,$00. 4. An iem of plaet and ma hieery, the ont of whili hat teen 35 gio and whone get book value was $2,300, had been wold in the year for $1000 : No mecouraine entries relatinig to the dieposal have bees made in the conropany's bocks of aceneme ofher than in relation to the diyposal preceeds. 5. Depreciation on fixed assets is to be charged as follown. freebold land: no depreciation is charfed freeboldland:buildfings:nodepreciationischarged1%perannamceastraight-linebasis plant \& machinery; 30% per annum on a teducing balance basis 6. A bad deht of 53,000 is to be writien olf. 7. The provision for bad debts is to be revised to 4% of trade receivables. 8. A final dividend of 3c per ordinary share is to be proposed bv the directors. Required: (a) Repore an income statement for the year endad 31 Decenber 2002 , a tancenen of (b) A company is required to disctose its accounting policies in its pubistred accouns. Why you believe such disclosure is required. AC1025 PRINCIPL.ES OF ACCOUNTING Page 9 of 18
