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The trial balance of Leaders International Limited, a company which sells plastic containers, as at 31 March 2018, is given below Allowance for receivables 3,000

The trial balance of Leaders International Limited, a company which sells plastic containers, as at 31 March 2018, is given below

Allowance for receivables

3,000

Salaries and wages

80,100

Inventory at 1 April 2017

36,120

Dividend paid

4,200

Purchases and Sales

Administrative expenses

442,618

46,580

747,253

Distribution costs

General Reserve

Land at cost

33,115

110,000

4,800

Motor vehicles at cost

32,860

Motor vehicles accumulated depreciation at 1 April 2017

17,450

1 Ordinary Shares

50,000

Retained Earnings

Buildings at cost

120,000

49,690

Buildings accumulated depreciation at 1 April 2017

18,380

Bank

Share Premium

32,350

2,700

5% Loan notes

Loan note interest

2,000

90,000

Trade Receivables

77,340

Trade Payables

34,010

1,017,283

1,017,283

The following information should also be considered regarding Leaders International Limited:

Motor Vehicles are depreciated at 20% per annum using the reducing balance method.

i) Motor Vehicles are depreciated at 20% per annum using the reducing balance method.

ii) Buildings are to be depreciated at 3% per annum using the straight-line method.

iii) The closing inventory was valued at 54,890.

iv) Corporation tax on profits was estimated at 14,950.

v) Administrative expenses accrued were 3,600.

vi) A customer who owed 5,200 has gone bankrupt and Leaders International Limited has decided to treat the amount as a bad debt.

vii) Distribution costs prepaid amounted to 1,830.

viii) The allowance for receivables is to be adjusted to represent 5% of the trade receivables.

Required:

Prepare the following statements for Leaders International Limited:

a) Income Statement for the year ended 31st March 2018 (25 marks) b) Statement of Financial Position as at 31st March 2018 (25 marks)

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