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Question 1 (Total 25 marks) The following information relates to Ventro plc. Trial Balance as at 31/3/2017 DET CREDIT 000 650 650 1.540 Administration expenses

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Question 1 (Total 25 marks) The following information relates to Ventro plc. Trial Balance as at 31/3/2017 DET CREDIT 000 650 650 1.540 Administration expenses 2,360 Asset Replacement Reserve 120 Bank overdraft 2 Cash and cash equivalents 35 Debenture Debenture interest 27 Distribution expenses Dividend 139 Inventory 385 Plant & Equipment -cost 4,240 Plant & Equipment - accumulated depreciation 1,290 Profit reserve 826 Property 6,760 Provision for bad debts Provision for discount 50 Purchases Revaluation reserve 330 Revenue 11,800 Share capital (ordinary shares 1.900,000 2 per share) 3,800 Share premium 2,660 Taxation Trade and other payables 960 600 Trade receivables 23.170 2 3,170 de oito Adjustments yet to be processed: 1. A stock count valued closing inventory at 165,000. 2uod Ecoton 2. Administration expenses outstanding at the end of year amounted to 60,000 3. Distribution expenses prepaid at the end of year amounted to 650,000 4 Depreciation of Plant and Equipment should be provided for at 25% per annum reducing balance, 5. The provision for bad debts should be maintained at sx of trade receivables and the provision for discount at 1x of cash expected from trade receivables. 6. Interest of 6% p.a. has been agreed in relation to the debenture loan. 7. Additional corporation tax of 11,000 must be provided for. 8. A transfer of 690,000 to the asset replacement reserve should be made. 9. An independent valuation certified that property showed an increase in value of 0625.000 10. A dividend of 60.08 cents per share will be proposed by the directors at the next AGM, Required (10 marks) (5 marks) (10 marks) a) A Statement of Profit or Loss for year ending 31/3/2017 b) A Statement of Changes in Owners' Equity for year ending 31/3/2017 C A Statement of Financial Position as at 31/3/2017

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