trial balance.

The trial balance of Banana plc at 30 June 2014 was as follows:

Debit Credit
£ £
Equity share capital 200,000
Inventory as at 1 July 2013 191,750
Trade receivables 137,500
Trade payables 99,050
8% debentures 100,000
Retained earnings as at 1 July 2013 47,645
Debenture interest paid 4,000
Equipment - cost 175,000
Equipment - provision for depreciation at 1 July 2013 42,000
Motor vehicles – cost 142500
Motor vehicles – provision for depreciation at 1 July 2013 51,750
Cash and bank 19,615
Revenue 541,750
Purchases 332,950
Distribution costs 8,030
Dividend paid 37,500
General expenses 38,350
Allowance for receivables 5,000
1,087,195 1,087,195

The following additional information at 30 June 2014 is available:

Distribution costs include a prepayment of £1,750
There are accrued general expenses £12,500. General expenses are to be allocated 20% to production, 30% to distribution and the remainder to administration
Bad debts of £1,500 are to be written off
Depreciation of fixed assets is to be provided as follows:
Equipment 20% straight line
Motor vehicles 40% reducing balance
Provision of £42,500 for corporation tax is to be made.
Inventory as at 30 June 2014 was £246,860
The second half-year’s debenture interest is to be paid
The allowance for receivables is to be equal to 3% of receivables.
Filll in the following answers:

1. Cost of sales

2. Distribution costs

3. Administrative expenses

4. Finance costs

5. Profit for the year

6. Property, plant and equipment

7. Trade receivables

8. Retained earnings

9. Trade and other payables

10. Current tax payable


  • janiceyongjaniceyong Registered Posts: 2
    sorry for the debit and credit side. It seems to be a problem in posting just now.
  • kelsmickkelsmick AberdeenRegistered Posts: 89
    You would just make the appropriate amendments then that would be the figures in your answers. The best way to do it is to change it line by then then add your trial balance at the end and it should match.
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