this is the income statment

(a) Using the trial balance and additional information provided above, prepare in the appropriate format a statement of financial position as at 30 June 2020 with the profit for the year as the balancing figure. (20 Marks) (5) Briefly explain the 'duality concept (5 Marks) (Total 25 marks) Alpha Lad has the following Tulad balance as at 30 June 2012 Trail balance as at 30 June 2020 E Di CH 52.0 Purchase General expenses Distribution expenses Selling expenses Sess uchas return Ment Son Debentures Property to Pan Machinery at com 245.70 21.100 54,600 0.000 1.200 210 21.400 50,000 120,000 000 0.000 SEO 1200 Cash Chand Traces Trades try 2012 Property Accumulated dep Plant & Mary Accum deprec 2013 et comedon 2012 Share 3 26.000 Bank loan tained MA ersten 1. 11.NO Additional information is provided: 1. The closing inventory as at 30 June 2020 is valued at 41.500 The provision for depreciation on building is 3% on cost: Equipment is charged at 10% on a reducing balance basis and Plant & Machinery on a straight-line basis. The estimated useful life of the plant & machinery is 12 years and the residual value at the end of the useful life is estimated ENCEGW Corporal Accounting Page 20 N at 6,000 The company has decided to revalue the building to E450,000 and to continue to maintain depreciation at the rate of per annum on the revalued costs An amount of 612,000 for six months rent for the period ending 31 August 2020 was paid on 1 February 2020 interest on the Bank loan at the rate of per armumis soil outstanding at the end of June 2020. 66.200 of selling expenses were stoutstanding at the end of 30 June 2020 Question 28 (a) Briefly explain the differences between financial accounting and management accounting (15 Marks) (1) Explain the advantages and disadvantages of a sole trader and a public limited company (10 Marks) (Total 25 Marks) For Alpha Ltd For Period ending 30 Jun 2020 Particulars A Revenue from operations Sales Sales Retur Amount 522550 3 260 5.29 390 5.23,350 31 250 2.45.760 4210 41 500 Total Revenue 189 cost and Expense Data Cost of goods Sold Opening inventory Purchases Purchases Retur Closing inventory General Expenses Distribution Expenses Seling Expenses Expense as per TB Outstanding Expense Rent Expenses Expense as per TB Prepaid Expense Total Expense (Excluding interest and depreciation EBITDA 231,300 21 300 54.600 22.600 6 200 48.000 21.400 2000 19,400 3.75,400 1.53.990 13.500 D Depreciation Expense Depreciation on Building (450 0003) Deprecation on Equipment 50.000-13,550F 10%) Depreciation on Part & Machinery (Refer Woning below) LE! EBIT 3645 7000 24 145 1,23,645 5000 1350 6350 Interest Expenses Interest on Debertures terest on Bank Loan (5000) 10 Profit from operations Working Note for Depreciation on Plant & machinery 1,23,495 Purchase Cost Salvage Value Value for Deprecation Useful Life Depreciation per year 90.000 6000 84.000 12 Years 7 000 Answer to part (b): Meaning of "Historic Cost" Historic cost is the value at which asset is acquired by the organisation in the books of accounts. This is basically the cost before any depreciation is charged to asset. At times, to ensure company always have track of historic cost, the company discloses its asset and reduce it by accumulated depreciation rather than disclosing the net value of asset in its books. (a) Using the trial balance and additional information provided above, prepare in the appropriate format a statement of financial position as at 30 June 2020 with the profit for the year as the balancing figure. (20 Marks) (5) Briefly explain the 'duality concept (5 Marks) (Total 25 marks) Alpha Lad has the following Tulad balance as at 30 June 2012 Trail balance as at 30 June 2020 E Di CH 52.0 Purchase General expenses Distribution expenses Selling expenses Sess uchas return Ment Son Debentures Property to Pan Machinery at com 245.70 21.100 54,600 0.000 1.200 210 21.400 50,000 120,000 000 0.000 SEO 1200 Cash Chand Traces Trades try 2012 Property Accumulated dep Plant & Mary Accum deprec 2013 et comedon 2012 Share 3 26.000 Bank loan tained MA ersten 1. 11.NO Additional information is provided: 1. The closing inventory as at 30 June 2020 is valued at 41.500 The provision for depreciation on building is 3% on cost: Equipment is charged at 10% on a reducing balance basis and Plant & Machinery on a straight-line basis. The estimated useful life of the plant & machinery is 12 years and the residual value at the end of the useful life is estimated ENCEGW Corporal Accounting Page 20 N at 6,000 The company has decided to revalue the building to E450,000 and to continue to maintain depreciation at the rate of per annum on the revalued costs An amount of 612,000 for six months rent for the period ending 31 August 2020 was paid on 1 February 2020 interest on the Bank loan at the rate of per armumis soil outstanding at the end of June 2020. 66.200 of selling expenses were stoutstanding at the end of 30 June 2020 Question 28 (a) Briefly explain the differences between financial accounting and management accounting (15 Marks) (1) Explain the advantages and disadvantages of a sole trader and a public limited company (10 Marks) (Total 25 Marks) For Alpha Ltd For Period ending 30 Jun 2020 Particulars A Revenue from operations Sales Sales Retur Amount 522550 3 260 5.29 390 5.23,350 31 250 2.45.760 4210 41 500 Total Revenue 189 cost and Expense Data Cost of goods Sold Opening inventory Purchases Purchases Retur Closing inventory General Expenses Distribution Expenses Seling Expenses Expense as per TB Outstanding Expense Rent Expenses Expense as per TB Prepaid Expense Total Expense (Excluding interest and depreciation EBITDA 231,300 21 300 54.600 22.600 6 200 48.000 21.400 2000 19,400 3.75,400 1.53.990 13.500 D Depreciation Expense Depreciation on Building (450 0003) Deprecation on Equipment 50.000-13,550F 10%) Depreciation on Part & Machinery (Refer Woning below) LE! EBIT 3645 7000 24 145 1,23,645 5000 1350 6350 Interest Expenses Interest on Debertures terest on Bank Loan (5000) 10 Profit from operations Working Note for Depreciation on Plant & machinery 1,23,495 Purchase Cost Salvage Value Value for Deprecation Useful Life Depreciation per year 90.000 6000 84.000 12 Years 7 000 Answer to part (b): Meaning of "Historic Cost" Historic cost is the value at which asset is acquired by the organisation in the books of accounts. This is basically the cost before any depreciation is charged to asset. At times, to ensure company always have track of historic cost, the company discloses its asset and reduce it by accumulated depreciation rather than disclosing the net value of asset in its books