From the following selected balances of Filo plc as at 31 March 20X5 draw up (i) a detailed trading and profit and loss account for internal use, and (ii) a profit and loss account for publication.

 

Notes:

(a) Stock at 31 March 20X5 £102,000.

(b) Wages and salaries are to be apportioned: Distribution costs 1 /4, Administrative expenses 3 /4.

(c) Rent and business rates are to be apportioned: Distribution costs 55 per cent, Administrative expenses 45 per cent.

(d) Apportion motor expenses in the proportions 2:3 between distribution costs and administrative expenses.

(e) Depreciate motor vehicles 20 per cent and equipment 10 per cent on cost.

(f) Accrue auditors’ remuneration of £11,000.

(g) Accrue corporation tax for the year on ordinary activity profits £364,000.

(h) A sum of £20,000 is to be transferred to general reserve.

Profit and loss account as at 31 March 20x4 102,000 84,000 1,462,000 2,456,000 108,000 37,000 14,700 136,000 Stock 1 April 20X4 Purchases Sales Returns inwards Returns outwards Carriage inwards Wages and salaries (see Note (b) Rent and business rates (see Note (c)) General distribution expenses General administrative expenses 14,000 28,000 24,000 36,000 Discounts allowed Bad debts 5,000 12,000 Debenture interest Motor expenses (see Note (d) Interest received on bank deposit Income from shares in undertakings in which the company has a participating interest Motor vehicles at cost: Administrative 16,000 6,000 3,000 54,000 Distribution Equipment at cost: Administrative 92,000 15,000 Distribution Royalties receivable Dividends paid 12,000 4,000 120,000