Fit to page Page view A Reada RELIONA You must answer ALL questions from this section 1. The folowing trial balance has been extracted from the books of account of Maple Lid as at 31 December 2019: E Ordinary shares of 1 each 700,000 Revenue 1,300,000 Purchases 685,000 Bank overdran 40,000 8% Debentures 200,000 Dividends received 20,000 (from non-current asset investments) Selling and distribution costs 195,000 Administrative expenses Non-current asset investment at cost 240,000 600,000 670,000 Motor vehicles at cost Accumulated depreciation - motor vehicles Office equipment at cost Accumulated depreciation - Office equipment 150,000 150,000 90,000 Retained earnings 113,000 Inventories (at 1 January 2019) 90.000 Trade payables 85,000 Trade receivables 120,000 Interim debenture interest paid Share premium account 8,000 60,000 2,758,000 2,758,000 Question 1 continues overleaf + Fit to page Page view Module Code: BS1611 Additional information: The following information relates adjustments to be made after the above trial balance had been drawn up: i. Inventories at 31 December 2019 are 130,000 (4 marks) ii. Depreciation is charged on office equipment at 15% on a reducing balance basis. Straight line depreciation is charged on motor vehicles at 20%. It is company policy to employ strict time basis depreciation (10 marks) On 31 October 2019 the company sold a vehicle which had cost 30, when bought on 1 May 2017. The company received 12,000 for the vehicle (10 Marks) iv. On 8 August 2019 the directors proposed dividend of 5p equity share. The dividend had not been paid at year end. (4 marks) v. At year end the Corporation Tax due was estimated to be 10,000, (2 marks) vi. At year end the directors decided to write off a debt of 30,000 and create a provision for doubtful debts of 5% of closing trade receivables. (10marks) Required: Prepare Maple Ltd's income statement for the year ended 31 December 2019 and a balance sheet as at that date. (Total 40 Marks)