Publish Account

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Published Accounts Practice Question 1

The following trial balance was extracted from the books of Eavis plc on 31 December 2009:

£000£000
Sales11,700
Provision for depreciation:
Plant 738
Vehicles 375
Rent receivable 100
Trade payables 738
Debentures 250
Issued share capital:
Ordinary £1 shares 3,125
Preference shares (treated as equity) 625
Share premium 250
Retained earnings 875
Inventory 825
Purchases 5,963
Delivery costs 125
Salesmen’s salaries 800
Administrative wages and salaries 738
Plant (includes £362,000 acquired in 2009) 1,562
Motor vehicles 1,125
Goodwill 1,062
Distribution costs 290
Administrative expenses 286
Directors’ remuneration 375
Trade receivables 3,875
Cash at bank and in hand 1,750
18,77618,776

Notes:
1. Provide for:
a. An audit fee of £38,000.
b. Depreciation of plant at 20% straight line. A full year’s depreciation is provided for acquisitions made during the year. c. Depreciation of vehicles at 25% reducing balance. d. The goodwill suffered an impairment in the year of £177,000. e. Corporation tax of £562,000.

f. Debenture interest of £25,000.
2. Closing inventory was valued at £1,125,000 at the lower of cost and net realisable value. 3. Administrative expenses were prepaid by £12,000.

Required:
a) Prepare a statement of comprehensive income for internal use for the year ended 31 December 2009. b) Prepare a statement of comprehensive income for the year ended 31 December 2009 and a statement of financial position as at that date in the Format 1 (function) style of presentation.
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