Prepare for Giorgio F PLC the statement of profit or loss for the year ended 31 March 2020
Question (58marks)
| GIORGIO F PLC: | ||
| The following balances were extracted from the accounting records of Giorgio F PLC | ||
| Trial Balance as of 31 March 2020 | ||
| DR | CR | |
| Purchases | 372,000 | |
| Trade payables | 80,000 | |
| Salaries and wages | 54,000 | |
| Directors’ remuneration | 10,000 | |
| Audit fees | 3,000 | |
| Heat and light | 25,000 | |
| Inventory, 01 April 2019 | 125,000 | |
| Debenture Interest | 10,000 | |
| Interim dividend paid | 120,000 | |
| Building at cost | 500,000 | |
| Building – accumulated depreciation 01 Apr 2019 | 50,000 | |
| Fixtures and fittings at cost | 100,000 | |
| Fixtures and fittings – accumulated depreciation, 01 Apr 2019 | 20,000 | |
| 10% Debentures – 2023 | 90,000 | |
| Ordinary share capital (fully paid) | 800,000 | |
| Trade receivables | 120,000 | |
| Bank | 267,000 | |
| Revenue | 940,000 | |
| Share premium account | 150,000 | |
| Retained earnings | 145,000 | |
| Communications expenses | 20,000 | |
| General reserve | 22,000 | |
| Long-term investments | 571,000 | |
| 2,297,000 | 2,297,000 | |
| The following additional information as of 31 March 2020 should be considered: | ||
| (i) Inventory was valued at £127,000 | ||
| (ii) Audit fees of £500 were outstanding | ||
| (iii) The prepaid debenture interest is to be accounted for | ||
| (iv) Depreciation is to charge on buildings at 10% on the straight-line basis and on | ||
| fixtures and fittings at 15% on the reducing balance basis | ||
| (v) The directors decided to transfer £30,000 to the general reserve account | ||
|
Required: |
||
| Prepare for Giorgio F PLC: | ||
| (a) the statement of profit or loss for the year ended 31 March 2020 [22marks] | ||
| (b) the statement of changes in equity for the year ended 31 March 2020 [14marks] | ||
| (c) the statement of financial position for the year ended 31 March 2020 [22marks] | ||
