Question 19.2 Warwick Ltd Trial Balance as at 31 December 2013 Dr 2,800,000 1,500,000 620,000 224,000 450,000 186,000 6,105,800 3,160,400 280,100 135,000 Buildings - Cost Machinery - Cost Motor Vehicles - Cost Accumulated Depreciation as ar 31 December 2012: Buildings Machinery Motor Vehicles Revenue Purchases Inventory as at 1 January 2013 Purchases returns Sales returns Manufacturing wages Administration costs Administration wages Auditors fee Directors fees Motor Expenses Bad Debts Allowance for bad debts Finance cost Ordinary Share Capital El each Share Premium Retained Earnings as at 31 December 2012 7% Loan (repayable in 2017) Trade Receivables Bank Trade Payables 198,000 435,000 285,900 306,200 15,000 189,000 220,000 10,500 6,500 14,000 500,000 450,000 1,364,100 900,000 518,000 168,700 399,400 10,720,800 10,720,800 Additional information is available: 1. The inventory on hand as at 31 December 2013 is valued at 346,200. 2. The estimate of the tax charge for the year ended 31 December 2013 is 294,280. 3. Management feel an allowance for bad debts is required at a level of 3% of trade receivables. 4. The loan was taken out on 1 January 2013. 5. Depreciation is to be charged as follows: Buildings -2% on a straight line basis charged to administration costs Machinery - 10% on a straight line basis charged to cost of sales Motor vehicles -15% on a straight line basis charged to selling and distribution expenses. Requirement: a) Prepare the Statement of Profit or loss and other comprehensive income of Warwick Ltd for the year ended 31 December 2013. b) Prepare the statement of financial position of Warwick as at 31 December 2013