Black ltd is a company that makes clothing The following draft trial balance has been extracted from the company's books as at 31 December 2020 Freehold premises acquired for 1 8 million were revalued in 2017, recognising a gain of 600,000 These include a warehouse, which cost 120,000, was revalued at 150,000 and was sold in June 2020 for 225,000 Jazzy does not depreciate freehold premises Black wishes to report plant and machinery at open market value which is estimated to be 1,960,000 on 1 January 2020 Company policy is to depreciate its assets on the straight line method at annual rates as follows Plant and machinery 10 charge to cost of sales Furniture and fittings 5 charge to Administration expenses Until this year the companys policy has been to capitalise development costs, to the extent permitted by relevant accounting standards The company must now write off the development costs, including 124,000 incurred in the year, as the project no longer meets the capitalisation criteria The inventory at 31 December 2020 is 1,468,000 Income tax for the year is estimated at 122,000 Directors declared a final dividend of 4p per share declared, but not paid at the year end Required Prepare the following statements for Jazzy Costumes Limited in respect of the year ended 31 December 2020 You should show clearly all your workings a) the statement of profit or loss and other comprehensive income b) the statement of financial position c) the statement of changes in equity 0 3 0 3 Freehold Premises 2,400 Plant and Machinery 1,800 (Accumulated Dep At Jan 2020) 540 Furniture and Fittings 620 (Accumulated Dep At Jan 2020) 360 Inventory at 1 Jan 2020 630 Sales 6,465 Adminstrative Expenses 1,126 Ordinary Shares of 1 each 4,500 Intangibles 365 Revaluation Reserve 600 Development Costs 415 Share Premium 500 Trade Recievables 947 Trade Payables 566 Purchases 5,003 Distribution Costs 669 Overprovision of Tax 26 Divedend Received 80 Interim Dividend Paid 200 Retained Earnings 488 Disposal of warehouse 225 Cash and Bank Balances 175 14,350 14,350

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Black ltd is a company that makes clothing. The following draft trial balance has been extracted from the company's books as at 31 December 2020:

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Freehold premises acquired for 1.8 million were revalued in 2017, recognising a gain of 600,000. These include a warehouse, which cost 120,000, was revalued at 150,000 and was sold in June 2020 for 225,000. Jazzy does not depreciate freehold premises.
Black wishes to report plant and machinery at open market value which is estimated to be 1,960,000 on 1 January 2020.
Company policy is to depreciate its assets on the straight-line method at annual rates as follows:
- Plant and machinery 10% charge to cost of sales
- Furniture and fittings 5% charge to Administration expenses
Until this year the companys policy has been to capitalise development costs, to the extent

permitted by relevant accounting standards. The company must now write off the development costs, including 124,000 incurred in the year, as the project no longer meets the capitalisation criteria.
The inventory at 31 December 2020 is 1,468,000
Income tax for the year is estimated at 122,000
Directors declared a final dividend of 4p per share declared, but not paid at the year-end

Required: Prepare the following statements for Jazzy Costumes Limited in respect of the year ended 31 December 2020. You should show clearly all your workings. a) the statement of profit or loss and other comprehensive income b) the statement of financial position c) the statement of changes in equity

0*3 0*3 Freehold Premises 2,400 Plant and Machinery 1,800 (Accumulated Dep. At Jan 2020) 540 Furniture and Fittings 620 (Accumulated Dep. At Jan 2020) 360 Inventory at 1 Jan 2020 630 Sales 6,465 Adminstrative Expenses 1,126 Ordinary Shares of 1 each 4,500 Intangibles 365 Revaluation Reserve 600 Development Costs 415 Share Premium 500 Trade Recievables 947 Trade Payables 566 Purchases 5,003 Distribution Costs 669 Overprovision of Tax 26 Divedend Received 80 Interim Dividend Paid 200 Retained Earnings 488 Disposal of warehouse 225 Cash and Bank Balances 175 14,350 14,350