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You are provided with the trial balance with notes for Moxy Hotels Ltd as at 30 June 2021. You are requested to construct the appropriate

You are provided with the trial balance with notes for Moxy Hotels Ltd as at 30 June 2021. You are requested to construct the appropriate final accounts for the year ended 30 June 2021.

Moxy Hotel Ltd Trial Balance at june 30 2021

debit

credit

£000's

£000's

Revenue

23100

interest on investment received

20

Fixtures and fittings (cost)

30000

Fixtures and fittings (acc Dep)

5300

purchases

6880

administration expenses

1550

interest paid

170

tax

380

rent

3375

inventories

1

240

trade receivables

1750

cash

60

trade payable

325

bank overdraft

170

long term loan

2500

share capital

8160

retained profit

4830

44405

44405

Notes:

1. Inventory at 30 June 2021 was £280,000.

2. Rent includes a payment up to 30 September 2021 and a prepayment of £675,000 was made in the previous financial year.

3. One of the credit customers owing 150,000 has declared the bankruptcy. Provision for Irrecoverable Debt at 2% of receivables is to be provided for.

4. Depreciation is to be charged for Fixtures and Fittings on a straight-line basis over 10 years. The residual value is estimated to be £3,500,000.

5. Included in the Administrative Expenses is £530,000 of expenditure for Telephone. This includes accrued telephone expenses of £35,000 outstanding from the previous year. The telephone bill for June 2021 has not been received and appropriate provision needs to be made.

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Workings Cost of goods sold Beginning Merchandise inventory Purchases Closing Merchandise inventory Cost of goods sold2400006880000280000 6840000 Depr... blur-text-image

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