- Table Verona Limited Income Statement For The Year Ended 30 April Year 2 000 Revenue Cost Of Sales Gross Profit Depreci 1 (17.2 KiB) Viewed 10 times
Data table ASSETS Non-current assets Property, plant and equipment Premises Plant and equipment Fixtures and fittings Current assets Inventories Trade receivables Cash at bank Total assets EQUITY AND LIABILITIES Equity Ordinary shares of £1, fully paid Reserves at 1 May Year 1 Profit for the year Non-current liabilities 8% loan notes Current liabilities Trade payables Other payables Taxation Verona Limited Statement of financial position as at 30 April Year 2 Cost Depreciation Print £000 650 480 68 1,198 £.000 Done (120) (290) (22) 432 £000 530 190 46 766 730 670 87 1,487 200 330 450 980 500 592 131 50 773 2,253 I
1. A transaction for goods sold for £30,000 on credit on 30 April Year 2 had been omitted from the financial statements. The cost of the goods sold for the year and inventories at the year end were stated correctly. 2. A new piece of plant costing £25,000 was purchased on credit on 30 April Year 2 but had not been included in the financial statements. 3. An invoice for repairs for £25,000 was received on 30 April Year 2. This had not been paid and had been omitted from the financial statements. 4. Bad debts amounting to £20,000 should have been written off at the year end but had not been. 5. Interest payable of £40,000, which was still outstanding at the year end, had been incorrectly recorded in the financial statements as £70,000. 6. Depreciation on plant and equipment had been charged at 10 per cent on cost but should have been charged at 20 per cent on the cost of those assets held at the year end. 7. Taxation is at the rate of 10 per cent on profits before taxation and is payable after the year end.
Required: Prepare a revised set of financial statements incorporating the additional information in (1) to (7) above. Note: work to the nearest £1,000. Verona Limited Statement of financial position as at 30 April Year 2 ASSETS Non-current assets Cost Depreciation Property, plant and equipment Premises Plant and equipment Fixtures and fittings Current assets Inventories Trade receivables Cash at bank Total assets EQUITY AND LIABILITIES Equity Ordinary shares of £1, fully paid Reserves at 1 May Year 1 Retained profit for year Non-current liabilities 8% loan notes Current liabilities Trade payables Other payables Taxation £000 £000 £000
Verona Limited Income statement for the year ended 30 April Year 2 £000 Revenue Cost of sales Gross profit Depreciation Other operating costs Operating profit Interest payable Profit before taxation Taxation (10%) Profit for the year