Question

You are provided with the trial balance with notes for Moxy Hotels Ltd as at 30 June 2021. You are requested to construct the appropriate final accounts for the year ended 30 June 2021.

Moxy Hotel Ltd Trial Balance at june 30 2021
		debit	credit
		000's	000's
Revenue			23100
interest on investment received			20
Fixtures and fittings (cost)		30000
Fixtures and fittings (acc Dep)			5300
purchases		6880
administration expenses		1550
interest paid		170
tax		380
rent		3375
inventories	1	240
trade receivables		1750
cash		60
trade payable			325
bank overdraft			170
long term loan			2500
share capital			8160
retained profit			4830
		44405	44405

Notes:

1. Inventory at 30 June 2021 was 280,000.

2. Rent includes a payment up to 30 September 2021 and a prepayment of 675,000 was made in the previous financial year.

3. One of the credit customers owing 150,000 has declared the bankruptcy. Provision for Irrecoverable Debt at 2% of receivables is to be provided for.

4. Depreciation is to be charged for Fixtures and Fittings on a straight-line basis over 10 years. The residual value is estimated to be 3,500,000.

5. Included in the Administrative Expenses is 530,000 of expenditure for Telephone. This includes accrued telephone expenses of 35,000 outstanding from the previous year. The telephone bill for June 2021 has not been received and appropriate provision needs to be made.