Question 2 You are presented with the following trial balance of Malright, a limited liability company, at 31 October 20X7. Dr Cr $000 $'000 Buildings at cost 740 Buildings, accumulated depreciation, 1 November 20X6 60 Plant at cost 220 Plant, accumulated depreciation, 1 November 20X6 110 Land at cost 235 Bank balance 50 Revenue 1,800 Purchases 1,105 Discounts received 90 Returns inwards 35 Wages 180 Energy expenses 105 Inventory at 1 November 20X6 160 Trade payables 250 Trade receivables 320 Administrative expenses 80 Allowance for receivables, at 1 November 20X6 10 Directors' remuneration 70 Retained earnings at 1 November 20X6 130 10% loan notes 50 Dividend paid 30 $1 ordinary shares 650 Share premium account 80 3,280 3,280Additional information as at 31 October 20X7: (a) Closing inventory has been counted and is valued at $75,000. (b) The items listed below should be apportioned as indicated. Cost of Distribution Administrative Sales costs expenses Discounts received - 100 Energy expenses 40 20 40 Wages 40 25 35 Directors' remuneration 100 (c) An invoice of $15,000 for energy expenses for October 20%7 has not been received. (d) Loan note interest has not been paid for the year. () The allowance for receivables is to be increased to the equivalent of 5% of trade receivables. Any expenses connected with receivables should be charged to administrative expenses. (f) Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales. () Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses. (h) Income tax has been calculated as $45,000 for the year.Question 1 The following information has been extracted from the books of Tonson, a limited liability company, as at 31 October 20X6. Dr Cr $'000 $'000 Cash 15 Insurance 75 Inventory at 1 November 20X5 350 General expenses 60 Energy expenses 66 Marketing expenses 50 Wages and salaries 675 Discounts received 50 Share premium account 200 Retained earnings at 1 November 20X5 315 Allowance for receivables at 1 November 20X5 40 Sales revenue 5,780 Telephone expenses Property expenses 100 Bank 94 Returns inward 95 Trade payables 290 Loan note interest 33 Trade receivables 900 Purchases 3,570 7% loan notes 470 Irrecoverable debts 150 $1 ordinary shares 1,800 Accumulated depreciation at 1 November 20X5 Buildings 360 Motor Vehicles 80 Furniture and equipment 420 Land at cost 740 Buildings at cost 1,500 Motor vehicles at cost 240 Furniture and equipment at cost 1,200 9,899 9.899