Trial balance as at 31 December 20X2 Issued equity shares of 1 10% irredeemable preference shares of 1 each Trade receivables and trade payables Bank Inventory at 1.1.X2 6% debentures Sales Rental income Debenture interest (six months to 30.6.X2) Administration and general expenses, excluding salaries Administration salaries Distribution expenses Purchases Salaries associated with manufacture of goods Delivery inwards Property costs Retained earnings Freehold land, at cost Fixtures and fittings, at cost Accumulated depreciation, fixtures and fittings Allowance for receivables Goodwill '000 Dr 1,820 80 1,950 30 650 275 616 5,125 300 100 300 2,120 2,000 300 15,666 '000 Cr 800 200 1,866 1,000 9,500 200 1,100 900 100 15,666

Trial balance as at 31 December 202 Issued equity shares of 1 10% irredeemable preference shares of f1 each Trade receivables and trade payables Bank Inventory at 1.1. 2 6% debentures Sales Rental income Debenture interest (six months to 30.62 ) Administration and general expenses, excluding salaries Administration salaries Distribution expenses Purchases Salaries associated with manufacture of goods Delivery inwards Property costs Retained earnings Freehold land, at cost. Fixtures and fittings, at cost Accumulated depreciation, fixtures and fittings Allowance for receivables Goodwill \begin{tabular}{|c|c|} \hlinef000 & f'ooo \\ \hline Dr & Cr \\ \hline & \begin{tabular}{l} 800 \\ 200 \end{tabular} \\ \hline 1.820 & 1,866 \\ \hline \begin{tabular}{r} 80 \\ 1,950 \end{tabular} & \\ \hline 1,950 & \\ \hline & \begin{tabular}{l} 1,000 \\ 9,500 \end{tabular} \\ \hline & 200 \\ \hline 30 & \\ \hline 650 & \\ \hline 275 & \\ \hline 616 & \\ \hline 5,125 & \\ \hline 300 & \\ \hline 100 & \\ \hline 300 & 1,100 \\ \hline 2,120 & 1,100 \\ \hline 2,000 & \\ \hline & 900 \\ \hline & 100 \\ \hline 15,666 & \\ \hline & 15, \\ \hline \end{tabular} The following items have yet to be dealt with: (1) An inventory count has revealed the closing inventory figure to be f2,020,000. (2) The company depreciates fixtures and fittings at 20% on the straight line basis. (3) An impairment review has shown that 10% should be written off goodwill. The charge should be to administrative expenses. (4) The credit controller has said that a debt of f15,000 should be written off as irrecoverable, and the allowance for receivables should be increased to f200,000. (5) The income tax due on profits for the year is estimated at f750,000. (6) The allocation of expenditure between cost of sales, distribution costs and administrative expenses should be as follows. (7) The debentures are repayable in full in 10 years' time. Interest is paid in two equal instalments per annum. Requirement SCE Prepare year-end journal entries to adjust for the above items and prepare the final trial balance for Format plc, and present a statement of profit or loss for Format plc for the year ended 31 December 202 and a statement of financial position as at that date. 8/ A 1 for 8 bonus issue relating to issued equity shares was made out of retained earnings on 31/12/2. There were no new issues of preference shares during the year