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Question 13. Rode Ltd has provided the following trial balance, extracted from its books as at 30 April 2021: 000 000 Land, at cost 300.0
Question 13. Rode Ltd has provided the following trial balance, extracted from its books as at 30 April 2021: 000 000 Land, at cost 300.0 Buildings, at cost 400.0 Equipment, at cost 500.0 Vehicles, at cost 480.0 Investment property 380.0 Accumulated depreciation at 1 May 2020: Buildings 144.0 Equipment 320.0 Vehicles 240.0 Inventory at 1 May 2020 240.0 Trade receivables and payables 365.0 270.0 Allowance for receivables 40.0 Bank balance 180.0 Corporation tax 15.0 Revenue 2,580.0 Purchases 1,015.0 Directors' fee 250.0 Wages and salaries General distribution costs 540.0 260.0 340.0 35.0 General administrative expenses Rents received Ordinary shares of 1 each Retained earnings as at 1 May 2020 Disposal of vehicles 300.0 926.0 20.0 5,070.0 5,070.0 The following further information is available: 0 The company's non-depreciable land was valued at 370,000 on 30 April 2021 and this valuation is to be incorporated into the accounts for the year to 30 April 2021. (m) The company uses the fair value model to value its investment property. The fair value of the investment property as at 30 April 2021 is 410,000. This value has not been reflected in the accounts for the year to 30 April 2021. (II) The company's depreciation policy is as follows: Buildings 4% p.a. straight-line Equipment 40% p.a. reducing balance Vehicles 25% p.a. straight-line In all cases, a full year's depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal. None of the assets had been fully depreciated by 30 April 2021. (iv) On 1 March 2021, a vehicle used entirely for administrative purposes was sold for 20,000. The sale proceeds were banked and credited to a disposal account, but no further entries were made in relation to this disposal. The vehicle had cost 88,000 in August 2017. This was the only disposal of a non-current asset made during the year to 30 April 2021. 70% (V) Depreciation is apportioned as follows: Distribution Administrative cost expenses Buildings 50% 50% Equipment 25% 75% Vehicles 30% (vi) The company's inventory at 30 April 2021 is valued at 270,000 (vii) Trade receivables include a debt of 15,000 which is to be written off. The allowance for receivables is to be adjusted to 4% of the receivables which remains after this debt has been written off. (vii) The corporation tax charge for the year to 30 April 2020 was over-estimated by 25,000. The corporation tax liability for the year to 30 April 2021 is estimated to be 55,000. (ix) One-quarter of the wages and salaries were paid to distribution staff and the remaining three-quarters were paid to administrative staff. (x) General administrative expenses include bank overdraft interest of 10,000. REQUIRED a) Draft the statement of comprehensive income of Rode Ltd for the year to 30 April 2021. (8 marks) b) Draft the statement of financial position as at 30 April 2021. (12 marks) Total (20 marks)
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