You are presented with the following trial balance of Carl Ltd at 31 October 2018. Dr

Cr R,000

Building at cost

Buildings, accumulated depreciation, 1 November 2018 Plant at cost

Plant, accumulated depreciation, 1 November 2018 Land at cost

Bank balance

Revenue

Purchases

Discounts received

Returns inwards

Wages

Energy expenses

Trade Payables

Trade Receivables

Inventory at 1 November 2018

Allowance for debtors at 1 November 2018 Administrative expenses

Director's remuneration

Accumulated profit at 1 November 2018

10% Debenture

Dividend paid

R1 Ordinary shares

Share premium account

R,000 740

60 220

110 235

50 1,800

1,105

90

35 180 105

250 320

160

10

80 70

30

650

3,280

80 3,280

130 50

Additional information as at 31 October 2019.

a. Closing inventory has been counted and is valued at R75,000

b. An invoice of R15 000 for energy expenses for October 2019 has not been received.

c. The allowance for debtors is to be increased to 5% of trade receivable.

d. Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of

sales, 30% to distribution costs and 40% to administrative expenses.

e. Plant is depreciated at 20% per annum using the reducing balance method. The entire

charge is to be allocated to cost of sales

f. Tax has been calculated as R45 000 for the year.

g. The current share price of Carl Ltd is R1.30 per share

h. Debenture interest has not been paid for the year.

The items listed below should be apportioned as indicated Cost of Sales

Discounts received Energy expenses Wages

Director's remuneration

- 40% 40%

-

Administrative Distribution Costs Expenses

- 100% 20% 40% 25% 35%

- 100%

Required

1. Prepare the income statement for the year ended 31 October 2019

2. The statement of financial position as at 31 October 2019