Question
You have been provided with the below information for Mixing Ltd: Trial Balance as at 31 December 2023 Land and buildings at cost Fixtures and
You have been provided with the below information for Mixing Ltd:
Trial Balance as at 31 December 2023
Land and buildings at cost
Fixtures and fittings at cost
Motor vehicles at cost
Accumulated depreciation at 1 Jan 2023 - Buildings
Accumulated depreciation at 1 Jan 2023 - Fixtures & Fittings
Accumulated depreciation at 1 Jan 2023 - Motor vehicles
Overdraft
Revenue
Purchases
Inventory at 1 Jan 2023 Trade payables
Trade receivables
Operating expenses
Allowance for receivables at 1 Jan 2023 Retained earnings at 1 Jan 2023
Equity share capital
Additional information
Dr 000
5,000 1,980 200
Cr 000
1,000 260
80
55 2,090
75
5 3,905 500 7,970
Depreciation is treated as an operating expense, a full year is charged in the year of acquisition and none in the year of disposal, the following rates apply: Buildings 5% pa straight line; Fixtures and fittings 20% pa reducing balance; Motor vehicles 25% pa reducing balance.
360 30
120 280
7,970
[19:12, 20.11.2023] Zeynep: At the end of the year fixtures and fittings at a cost of 120k were scrapped. The accumulated depreciation associated with these assets was 90k.
At the end of the year motor vehicles with a cost of 70k were sold for 10k, the accumulated depreciation on these vehicles was 50k. The sales proceeds have not yet been received and have not been accounted for.
Of the land and buildings figure 3m relates to land.
The allowance for receivables is to be maintained at 5% of the closing receivables balance.
Closing inventory is 35k.
An electricity bill for 3k covering the quarter ended 31 December 20X3 was received on 2 January 2024. This has not been included in the accounts.
Public liability insurance of 18k for the 12 months to 30 April 2024 was paid on 1 May 2023. Tax to be accrued for the period is 180k.
Prepare the statement of profit or loss and the statement of financial position for Fixing Ltd as at 31 December 2023.
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