The trial balance for X plc at 31/07/29 is as follows: DR '000 CR E'000 6,219 2,387 58 23 1,756 694 42 180 1,900 3,450 985 Revenue Purchases Sales returns Purchase returns Administrative costs Distribution costs Interest on bank loan paid Interim dividend declared and paid Land at cost Buildings at cost Buildings depreciation (at 1 August 20x8) Plant and Machinery at cost Plant and Machinery depreciation (at 1 August 20x8) Motor vehicles at cost Motor vehicles depreciation (at 1 August 20x8) Trade payables Trade receivables Trade receivables provision Inventory (at 1 August 20x8) Bank Bank loan (to be repaid 30 June 2045) Ordinary shares of 1 each Share premium Retained earnings (at 1 August 20x8) 1,560 488 925 278 495 1,640 34 525 226 1,400 1,800 1,500 2,121 15,343 15,343 Notes to the Trial Balance 1. Depreciation is to be charged on the following basis: a. Buildings - 20 years straight line b. Plant and machinery -25 years straight line c. Motor vehicles - 15% reducing balance All depreciation is charged to administrative costs. 1. Depreciation is to be charged on the following basis: a. Buildings - 20 years straight line b. Plant and machinery - 25 years straight line c. Motor vehicles - 15% reducing balance All depreciation is charged to administrative costs. 2. Year end inventory is valued at 525,000. However it has been discovered that there are 3,000 items included within year end inventory which have been damaged. These items cost 46 but will require repair work costing 29 per item in order to be saleable for 63. 3. Administrative costs include a payment of 219,000 for premises insurance, which covered the period 1 January 20x9 to 31 December 20X9. 4. Trade receivables includes some debts which are now irrecoverable, amounting to 37,000, and therefore x ple wishes to write these debts off. The company also wishes to increase the general provision to 3% of receivables, 5. Interest on the bank loan is payable at 6% in half yearly instalments. X plc has not yet accounting for the second payment of interest on the loan Requirement: Using the information provided, complete the profit or loss expenses working below. (Round all calculations to the nearest thousand.) W1 Profit or loss expenses cos Admin. Distrib. Finance '000 '000 '000 '000 Purchases Purchase returns Balances per TB 42 Opening inventory Closing inventory Total depreciation expense Prepayment Bad debt write off Cost of receivables provision Loan interest accrued (Enter each value with no sign, comma or decimal places. Use a minus sign where appropriate.) 2387 -23 1756 694 525
