Question 1 The following information has been taken from Holiday Ltds book as on 31 July 2021: Plant and machinery - cost 950,000 General administrative expenses 675,800 Share capital 400,000 Revenue 3,647,125 Retained earnings on 1 August 2020 280,000 Rent 180,000 Inventory on 1 August 2020 550,000 General selling expenses 250,250 Accumulated depreciation plant and machinery 285,000 Gas, electricity, and water 85,750 Cash at bank 120,225 Loans (4%) 220,000 Trade receivables 345,600 Trade payables 165,800 Bad debts 4,500 Delivery costs outwards 40,000 Purchases 1,795,800 The following information that is not yet reflected in Holiday Ltds books is available at the year ended 31 July 2021: a) Plant and machinery are to be depreciated by 10% using straight-line with no residual value. b) Inventory on 31 July 2021 is 245,400. c) Rent of 15,000 has been paid in advance, and gas of 11,000 is to be accrued. d) 4% interest on the loans taken on 1 August 2020 has not yet been paid and is due on 1 August 2021. No accrual has yet been made. e) An allowance for doubtful debts needs to be 2.5% of the trade receivables figure. f) Taxation is payable at 20% of the net profit before tax. Required: Prepare an income statement (a statement of profit or loss) for the year ended 31 July 2021.

Question 1 The following information has been taken from Holiday Ltd's book as on 31 July 2021: Plant and machinery - cost General administrative expenses Share capital Revenue Retained earnings on 1 August 2020 Rent Inventory on 1 August 2020 General selling expenses Accumulated depreciation - plant and machinery Gas, electricity, and water Cash at bank Loans (4%) Trade receivables Trade payables Bad debts Delivery costs outwards Purchases 950,000 675,800 400,000 3,647,125 280,000 180,000 550,000 250,250 285,000 85,750 120,225 220,000 345,600 165,800 4,500 40,000 1,795,800 The following information that is not yet reflected in Holiday Ltd's books is available at the year ended 31 July 2021: a) Plant and machinery are to be depreciated by 10% using straight-line with no residual value. b) Inventory on 31 July 2021 is 245,400. c) Rent of 15,000 has been paid in advance, and gas of 11,000 is to be accrued. d) 4% interest on the loans taken on 1 August 2020 has not yet been paid and is due on 1 August 2021. No accrual has yet been made. e) An allowance for doubtful debts needs to be 2.5% of the trade receivables figure. f) Taxation is payable at 20% of the net profit before tax. Required: Prepare an income statement (a statement of profit or loss) for the year ended 31 July 2021