- The Following Trial Balance Has Been Provided From The Financial Records Of Bluey Energy Solutions Ltd For The Year Ende 1 (121.53 KiB) Viewed 27 times
Additional Information The following information was provided at the end of the year: 1. Inventory at 31st March 2022 was valued at £21 million. 2. Insurance costs paid in advance for the year ended at 30th September 2022 were £10 million. Insurance costs are to be allocated to cost of sales (20%), administrative expenses (40%) and distribution expenses (40%). 3. Gas and electricity costs for part of the year remain unpaid. The estimated gas and electricity costs for the 6 months to 31st May 2022 are £3m. Gas and electricity costs are allocated equally to cost of sales and administrative expenses. 4. Other costs are allocated as follows: Cost of sales Administrative Distribution expenses expenses Rent and rates 30% 30% 40% Depreciation 20% 10% 70% continued...
5. The company depreciates property, plant and equipment at 25% on a reducing balance basis. Of the balance relating to cost of property, plant and equipment £27 million related to land. 6. A bad debt of £2m has not been accounted for in the trial balance above. 7. The allowance for doubtful debts is to be maintained at 5% of outstanding trade receivables at the trial balance date. 8. The company completed a rights issue and issued 3 shares for every 4 held at a price of 70p per share. All shares were paid for and no entries have been made to account for this share issue. 9. The directors of the company propose to: a. Account for corporation tax of £7 million for the year. b. Account for the outstanding debenture interest unpaid. c. Pay a final ordinary dividend of 4p per share on all shares that were issued and paid up at the statement of financial position date. d. Transfer £5 million from the general reserve.