Answer Happy

The following trial balance has been provided from the financial records of Bluey Energy Solutions Ltd for the year ended 31st March 2022. Cr £m Dr £m 43 61 25 10 175 28 20 21 19 Administrative expenses Distribution expenses Insurance Rent and rates Non-current assets (Cost) Property, plant and equipment Accumulated Depreciation (at 01/04/2021) Property, plant and equipment Gas and Electricity Interim ordinary dividend paid Inventories (01/04/2021) Allowance for doubtful debts (at 01/04/2021) Revenue Retained earnings Ordinary Share Capital (10p) (at 01/04/2021) Share Premium General reserve Trade payables Trade receivables Bank 5% Debentures (2024). Purchases Debenture interest paid 3 230 28 20 18 8 16 42 15 200 145 5 566 566
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%
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.
Your finance course director has asked questions about the preparation of accounts and wants information on the points below. e) Identify the 3 ledgers. (3 marks) f) For each of the ledgers identified in (e): i. Identify the type of ledger account(s) included. ii. Describe the nature of the transactions that will go through those ledger accounts. (6 marks)