Depreciation on vehicles 80% distribution, 20% administration (last one)

Notes:

1. Closing inventory at 31.12.20 26,000

2. Depreciation is to be provided on plant and machineryat 10% per year, on a straight line basis

3. Depreciation is to be provided on vehicles at 10% per year, on a straight line basis

4. Depreciation is to be provided on fixtures at 20% per year, on a reducing balance basis

5. Electricity owing amounts to 6,000

6. The amount shown for rent,rates and insurance includes a prepayment of 13,200

7. A specific bad debt of 4,200 is to be written off as irrecoverable.

8. The provision for bad debts is to be adjusted to 2.5% of the adjusted closing receivables figure.

9. Apportion expenses as follows:

Depreciation on fixtures 40% distribution, 60% administration

General expenses 20% distribution, 80% administration

Rent, rates, insurance 30% distribution, 70% administration

Electricity 20% distribution, 80% administration

Depreciation on plant and machinery 50% distribution, 50% administration

Salaries 30% distribution, 70% administration

Bad and doubtful debts 100% distribution

Depreciation on vehicles 80% distribution, 20% administration

The following Trial Balance was extracted from the books of Cromwell plc on 31.12.20. Draw up an Income Statement and SOFP in Published format taking into account the notes at the foot of the Trial Balance FAILURE TO SHOW ALL WORKINGS WILL RESULT IN MARKS BEING LOST NOTE: FIRST DRAW UP ACCOUNTS FOR INTERNAL PURPOSES AND THEN REDUCE TOWN TO PUBLISHED FORMAL Purchases $30.000 Sales 000 Bank 12.800 Capital 70,000 Vehicles cost 44,000 Provision for depreciation on vehicles 26,400 General expenses 24,000 Rentrates. Insurance 130,000 Interest paid 7.000 Electricity 38.000 Plant & Machinery at cost 400,000 Provision for depreciation on plant & machinery 48,000 Salaries $2.000 Trade receivables 196 200 Trade uyables $2.000 Opening inventory 36,000 - 68on for doubtful dets 31.12.19 3.600 Fixtures al cost 120.000 Provision for Depreciation fixtures 30,000 Bank Loon 110.000 1.660 00 Notes: Closing inventory at 31.12.2026,000 2 Depreciation is to be provided on plant and machinery at 10% per year, on a straight line basis Depreciation is to be provided on vehicles at 10% per year, on a straight line basis Depreciation is to be provided on fixtures at 20% per year, on a reducing balance basis Electricity owing amounts to 6,000 The amount shoren for rent rates and insurance includes a prepayment of 12.200 A specific bad debt of 4.200 is to be written off as irrecoverable The provision for bad debts is to be adjusted to 2.5% of the adjusted closing receivables figure. Applion expenses as follows: Depreciation on fixtures 40% distribution, 60%. administration General expenses 20% distribution, 80% administration Rent rates, insurance 10% distribution, 70% administration Electricity 20% distribution, administration Depreciation on plant and machinery 50% distribution 50 administration Salaries 30% distribution, 70% administration Bailand doubtful debis 100% distribution Mewn while tributo 2014 PORTFOLIO QUESTION 1B The following Trial Balance was extracted from the books of Cromwell plc on 31.12.20. Draw up an Income Statement and SOFP in Published format taking into account the notes at the foot of the Trial Balance FAILURE TO SHOW ALL WORKINGS WILL RESULT IN MARKS BEING LOST. NOTE: FIRST DRAW UP ACCOUNTS FOR INTERNAL PURPOSES AND THEN REDUCE DOWN TO PUBLISHED FORMAT f Purchases 530,000 Sales 1,320, 000 Bank 12,800 Capital 70,000 Vehicles at cost 44,000 Provision for depreciation on vehicles 26,400 General expenses 24,000 Rent rates, Insurance 130,000 Interest paid 7,000 Electricity 38,000 Plant & Machinery at cost 440,000 Provision for depreciation on plant &machinery 48.000 Salaries 82,000 Trade receivables 196,200 Trade payables 52,000 36,000 ensitivity: lesviston for doubtful debts 31.12.19 Opening inventory 3,600 Fixtures at cost 120,000 Provision for Depreciation on fixtures 30,000 Bank Loan 110,000 1,660,000 1.660.0 00 Sot