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Question Bank Chapter 12

The document provides an extended trial balance and financial statements for Hexham PLC as of March 31, 20X8. The extended trial balance shows initial balances, adjustments, and final balances for various accounts. The statements of profit or loss and financial position are also presented based on the adjusted balances. The adjustments include reclassifying certain expenses to better match revenues and expenses, as well as recognizing accruals and provisions.

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Giang Thái Hương
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56 views

Question Bank Chapter 12

The document provides an extended trial balance and financial statements for Hexham PLC as of March 31, 20X8. The extended trial balance shows initial balances, adjustments, and final balances for various accounts. The statements of profit or loss and financial position are also presented based on the adjusted balances. The adjustments include reclassifying certain expenses to better match revenues and expenses, as well as recognizing accruals and provisions.

Uploaded by

Giang Thái Hương
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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HEXHAM PLC

Extended trial balance as at 31 Mar 20X8


Initial TB Adjustments
Debit Credit Debit
Sales 1,150,000
Inventories at 1 April 20X7 75,000 91,000
Purchases 465,000
Distribution costs 220,000
Administrative expenses 340,000 8,000
Irrecoverable debts expense 36,000 4,800
Loan interest paid 8,000 4,000
Land and buildings cost 600,000
Plant and equipment cost 340,000
Land and buildings accumulated depreciation at 1 April 20X7 96,000
Plant and equipment accumulated depreciation at 1 April 20X7 63,000
Trade receivables 60,000
Allowance for receivables 5,000 2,240
Bank 24,000
Equity share capital (£1 shares) 400,000
Share premium 100,000
Bank loan 200,000
Retained earnings 61,000
Equity dividends paid 15,000
Trade payables 54,000
Advance deposits from customers 6,000
Cost of sales 574,000
Prepayments 32,000
Accruals
Income tax exp 10,000
Warranty exp 15,000
Provisions for warranty
Total 2,159,000 2,159,000 741,040

Statement of profit or loss for the year ended 31 March 20X8


£
Revenue 1,150,000
Cost of sales (483,000)
Gross profit/(loss) 667,000
Distribution costs (220,000)
Administrative expenses (316,000)
Other operating expenses (53,560)
Profit/(loss) from operations 77,440
Finance costs (12,000)
Profit/(loss) before tax 65,440
Income tax expense (10,000)
Profit/(loss) for year 55,440

Statement of financial position at 31 March 20X8


£
Non - Current assets
Land and buildings 496,000
Plant and equipment 243,000
739,000
Current assets
Inventories 91,000
Trade receivables 52,440
Prepayments 32,000
175,440
Total assets 914,440

Equity
Equity share capital 400,000
Share premium 100,000
Retained earnings 101,440
601,440
Non-current liabilities
Borrowings 200,000
200,000
Current liabilities
Bank overdraft 24,000
Trade payables 54,000
Accruals 14,000
Deferred income 6,000
Provision 15,000
113,000
Total equity and liabilities 914,440
8
Adjustments Final TB
Credit Debit Credit Debit acc
1,150,000 1a Cost of sales
75,000 91,000 1b Cost of sales
465,000 0 1c Closing inventory
220,000 2 Prepayments
32,000 316,000 3a Administrative expenses (Dep. exp)
2,240 38,560 3b Cost of sales (Dep. exp)
12,000 4a Other operating exp (Irrecoverable debt exp)
600,000 4b Allowance for receivables
340,000 5 Finance costs
8,000 104,000 6 Income tax exp
34,000 97,000 7 Other operating exp (Warranty exp)
4,800 55,200 8 Prepayments
2,760
24,000
400,000
100,000
200,000
61,000
15,000
54,000
6,000
91,000 483,000
32,000
14,000 14,000
10,000
15,000
15,000 15,000
741,040 2,227,760 2,227,760
Credit acc Amount
Opening inventory 75,000
Purchases 465,000
Cost of sales 91,000
Administrative expenses (Insurance exp) 7,000
Land and Buildings - Accu. Dep. 8,000
Plant and Equipment - Accu. Dep. 34,000
Trade receivables 4,800
Other operating exp (Irrecoverable debt ex 2,240
Accruals (accrued interest payables) 4,000
Accruals (accrued tax payables) 10,000
Provisions for warranty 15,000
Administrative expenses (Rent exp) 25,000
741,040

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