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Make a statement of profit or loss and other comprehensive income for the year ended 31 December 2019. Also there is an additional information: (1)

Make a  statement of profit or loss and other comprehensive income for the year ended 31 December 2019.


Also there is an additional information:

(1) Inventories at 1 January 2020 were valued at $12,000.

(2) Work-in-progress at 1 January 2020 was valued at $3,000

(3) Depreciation charges for the year amounting to $17,000 and $2,700 have been included in distribution costs and administrative expenses, respectively.

(4) The income tax for the year is evaluated as $20,000

(5) There were no disposals of any non-current assets during the year. Land was revalued on 31 December 2019 to $100,000. No entries have yet been made to record this.

(6) Receivables totalling $14,000 are to be written off

(7) Intangible assets are to be amortized at 10% on cost

(8) Allowance for receivables should be created as 0,5% of net sales

(9) Cash at bank includes EURO 5,000. Currency rate on 31 December 2019 was 1.2EUR/1USD, currency rate used on the date of trial balance preparation was 1.45EUR/1USD

(10) A company is given $300,000 on 31 December 2019 to keep staff employed within a deprived area. The company must not make redundancies for the next three years, or the grant will need to be repaid. No entries have yet been made to record this.

 

The trial balance of Beta shows the following balances at 31 December 2019: Capital (owners' equity) Reserves retained from earnings Finance costs Carriage outwards Retained earnings 1 January 2019 Inventory (raw materials) at 1 January 2019 60 Sales Purchases Other operating expenses Sales returns Work-in-progress at 1 January 2019 Intangible assets Administrative wages Warehouse plant and equipment - cost Accumulated depreciation - 1 January 2019 Delivery vehicle hire Distribution expenses Administrative expenses Directors' salaries Capital reserve Accounts payable Deferred tax liabilities Accounts receivable Dr S000 Cash at bank Land 70 590 50 58 13 80 270 12 92 14 20 30 30 380 110 120 1999 Cr S000 200 26 104 1070 30 13 120 436 1999

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