You are the accountant for Trips Co which manufactures suitcases You are drawing up the financial statements for the year ended 31 March 2017 The initial trial balance is shown below You discover the following additional information Inventory consists of three different lines of suitcases, Laga, Mara and Para The following table gives information about costs and inventory amounts at 31 March 2017 for each suitcase line Machinery is depreciated at 15 per annum on a straight line basis with an assumed residual value of 80,000 Insurance is paid annually in advance on 1 February, with payments on 1 February 2016 of 32,000 and for 1 February 2017 being 15 percent higher than the previous year Electricity was paid quarterly in arrears with bills during the year of 9,000 each on 30 April, 31 July and 31 October 2016 and 11,000 on 31 January 2017 You are expecting the next bill on 30 April 2017 to be the same as the previous bill At 31 March 2017, an inventory count shows that 200 Mara suitcases are damaged and are unsaleable In addition, Para suitcases are unpopular and will need to be discounted to sell them The company estimates that it will not be able to sell Para suitcases for more than 70 00 per suitcase Produce a Statement of Profit or Loss for the year ended 31 March 2017 and a Statement of Financial Position as at that date for Trips Co Show your workings DebitCredit 26,667 72,450 23,650 28,000 Prepaid insurance at 31 March 2016 Other current assets Heating Transportation Interest 30,000 2,500,000 Revenue 500,000 Loan Inventory at 31 March 2016 Machinery (at cost) Machinery (Accumulated depreciation) at 31 March 2016 Purchases 750,550 1,855,000 367,780 1,562,000 263,250 6,000 Trade payables Electricity Accrual at 31 March 2016 Trade receivables 282,000 197,480 General expenses Cash 131,691 Retained profit at 31 March 2016 Ordinary share capital 196,458 1,126,000 4,959,488 4,959,488 Number of Costs of production Normal selling price suitcases in per suitcase inventory 2,375 230 50 Laga Mara 90 1,850 4,600 120 300 00 140 00 Para 82

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You are the accountant for Trips Co. which manufactures suitcases. You are drawing up the financial statements for the year ended 31 March 2017. The

You are the accountant for Trips Co. which manufactures suitcases. You are drawing up the financial statements for the year ended 31 March 2017. The initial trial balance is shown below: image text in transcribed

You discover the following additional information:

Inventory consists of three different lines of suitcases, Laga, Mara and Para. The

following table gives information about costs and inventory amounts at 31 March 2017 for each suitcase line.
Machinery is depreciated at 15% per annum on a straight line basis with an assumed residual value of 80,000.
Insurance is paid annually in advance on 1 February, with payments on 1 February 2016 of 32,000 and for 1 February 2017 being 15 percent higher than the previous year.
Electricity was paid quarterly in arrears with bills during the year of 9,000 each on 30 April, 31 July and 31 October 2016 and 11,000 on 31 January 2017. You are expecting the next bill on 30 April 2017 to be the same as the previous bill.
At 31 March 2017, an inventory count shows that 200 Mara suitcases are damaged and are unsaleable.
In addition, Para suitcases are unpopular and will need to be discounted to sell them. The company estimates that it will not be able to sell Para suitcases for more than 70.00 per suitcase

Produce a Statement of Profit or Loss for the year ended 31 March 2017 and a Statement of Financial Position as at that date for Trips Co. Show your workings.

DebitCredit 26,667 72,450 23,650 28,000 Prepaid insurance at 31 March 2016 Other current assets Heating Transportation Interest 30,000 2,500,000 Revenue 500,000 Loan Inventory at 31 March 2016 Machinery (at cost) Machinery (Accumulated depreciation) at 31 March 2016 Purchases 750,550 1,855,000 367,780 1,562,000 263,250 6,000 Trade payables Electricity Accrual at 31 March 2016 Trade receivables 282,000 197,480 General expenses Cash 131,691 Retained profit at 31 March 2016 Ordinary share capital 196,458 1,126,000 4,959,488 4,959,488 Number of Costs of production Normal selling price suitcases in per suitcase inventory 2,375 230.50 Laga Mara 90 1,850 4,600 120 300.00 140.00 Para 82