Further information 1. Depreciation has not yet been charged. There were no movements in non-current assets during the year. The plant is depreciated at 10%

Best Writers accounting, business-managerial-accounting Further information 1. Depreciation has not yet been charged. There were no movements in non-current assets during the year. The plant is depreciated at 10%

accounting, business-managerial-accounting

Further information 1. Depreciation has not yet been charged. There were no movements in non-current assets during the year. The plant is depreciated at 10%

Further information 1. Depreciation has not yet been charged. There were no movements in non-current assets during the year. The plant is depreciated at 10% straight-line on a monthly basis taking into account the month of sale or purchase. Freehold buildings are depreciated over their useful life of 40 years. Depreciation on the plant is charged to cost of sales. Depreciation on freehold buildings is charged to administrative expenses. 2. Closing inventories at cost amounted to £8,650,000. 3. The company paid £138,000 in insurance costs in August 2020, which covered the period from 1 September 2020 to 31 August 2021. This was included in administrative expenses in the trial balance. 4. Interest on the bank loan for the last three months of the year has not been included in the accounts in the trial balance. The corresponding figure as at 31 December 2019 was £220,000. 5. The income tax charge for the year has been calculated as £1,030,000. 6. A cheque received from customer Broke pl for £15,000 on 27 December 2020, which was recorded in the accounting records of Moving plc, has not cleared. A liquidator was appointed to Broke plc on 15 January 2021 and he has confirmed that the cheque will not be reissued. Management has advised that Broke plc’s total outstanding balance of £50,000 should be written off as an irrecoverable debt and recorded in administrative expenses. 7. During the year Moving pl renewed its contract with company Distributers plc. The contract commenced on 1 October 2020 and no payment has been, made to date. The annual contract fee is £200,000. 8. All of Moving’s goods come with a 12-month warranty. Management estimate that 2% of these warranties will be exercised, and the cost of repair or replacement of these goods will be £250,000 in total. The warranties expense should be presented in administrative expenses Requirement: Prepare the statement of profit or loss , the statement of financial position and the statement of cash flow for Moving pl for the year ended at 31 December 2020. Show your workings Transcribed Image Text: The trial balance for Moving plc as at 31 December 2020 is shown as below:
£’000
£’000
Share capital
Trade payables
15,000
3,348
Trade receivables
10,954
Accruals at 31 December 2020
387
5% bank loan repayable in 10 years
20,000
Cash at bank
7,297
Retained earnings at 1 January 2020
Property (freehold buildings) cost
Plant and equipment cost
Property (freehold buildings) – accumulated depreciation
at 1 January 2020
Plant and equipment – accumulated depreciation at 1
January 2020
12,345
20,000
35,460
2,500
18,786
Interest
750
Sales
63,761
Purchases
40,946
Distribution costs
6,654
Administrative expenses
3,652
Inventories as at 1 January 2020
8,456
Dividends paid
1,958
136,127
136,127

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