Question
Question 1 The following trial balance has been extracted from the accounting records of Basslet Ltd at 31 May 2021: Debit 000 Credit 000 1
Question 1
The following trial balance has been extracted from the accounting records of Basslet Ltd at 31 May 2021:
| Debit 000 |
| Credit 000 |
1 equity shares (fully paid) |
|
| 6,200 |
Retained earnings 1 June 2020 |
|
| 2,070 |
Freehold land and buildings (cost) | 4,850 |
|
|
Plant and machinery (cost) | 8,230 |
|
|
Motor vehicles (cost) | 2,480 |
|
|
Accumulated depreciation at 1 June 2020: |
|
|
|
Freehold buildings |
|
| 225 |
Plant and machinery |
|
| 2,500 |
Motor vehicles |
|
| 1,300 |
Inventory at 1 June 2020 | 2,140 |
|
|
Sales |
|
| 37,150 |
Purchases | 24,260 |
|
|
Wages and salaries | 3,340 |
|
|
Light and heat | 350 |
|
|
Other administrative expenses | 1,270 |
|
|
Receivables | 3,260 |
|
|
5 NBS-7043B
Version 1
Payables |
|
| 2,200 |
Allowance for doubtful receivables |
|
| 115 |
Corporation tax paid | 630 |
|
|
Bank | 950 |
|
|
| 51,760 |
| 51,760 |
6 NBS-7043B
Version 1
Notes
In addition, the following information is available:
Other administrative expenses includes payment of 24,000 made on a maintenance contract for the 12 months ended 30 November 2021.
The allowance for doubtful receivables required at 31 May 2021 is 200,000.
Inventory at 31st May 2021 was valued at 2,620,000
The corporation tax charge for the year is 1,000,000.
Freehold land originally cost 2,000,000. Depreciation is charged as follows:
Buildings | Straight line over 25 years |
Plant and machinery | 10% straight line |
Motor vehicles | 33% per annum reducing balance |
Required:
Prepare the following financial statements for Basslet Ltd:
statement of financial position as at the 31 May 2021.
statement of profit or loss and other comprehensive income for the year ended 31 May 2021.
(25 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started