Prepare the company’s Statement of Profit or Loss for the year ended 31 March 20X3, in a form suitable for publication, together with its Statement of Financial Position as at that date. Support your response with full workings. 5. C.L.Worcester Ltd provides office supplies to businesses throughout the UK. Preparation ofits financial statements for the year ended 31 March 20X3 is now underway and the trialbalance is shown below. All figures in the trial balance and in the additional informationsupplied beneath it are in £'000s.DRCR£'000s£'000sCarriage inwards1,190Returns inwards & outwards230395Selling & distribution salaries33,500Administration salaries10,120Directors' remuneration4,500Purchases45,500Sales122,275Rents & utilities (power & water)9,200Insurance800Running & repair of distribution vehicles1,200AdvertisingProfessional feesLoan interestDiscounts allowed2,2001,700200290Inventory14,800Trade receivables12,500Trade payables20,600Allowance for irrecoverable receivables as at 1 April X2200Bank/cash1,180Share capital account3,600Share premium account1,400Retained earnings reserve8,140Bank loan (repayable in 20X8)Interim dividend paidDistribution vehicles: Cost as at 1 April X22,90050019,300Accumulated depreciation provision as at 1 April X2Fixtures & fittings: Cost as at 1 April X2Accumulated depreciation provision as at 1 April X25,40015,0009,000173,910173,910 Additional information is as follows:• Depreciation is charged on distribution vehicles on a 25% reducing balance basis.• It is assumed that fixtures and fittings, which are depreciated on a straight-line basisover five years, will have no residual value on disposal. Their depreciation is treatedas an administration cost.An accrual of £1,300 is required for power consumed in February and March 20X3but not billed by the year-end. Rent and utility costs are split equally between theselling and distribution department and the administration department.Insurance is treated as an administration cost. Included within the trial balance figureis a premium for public liability insurance of £375 which relates to cover for theperiod 1 August X2 to 31 July X3.• An accrual of £500 should be made for auditors' and consultancy fees.The company's policy is to make an allowance for irrecoverable receivables at a rateof 3% of the year-end trade receivables balance. Movements on this allowance areclassified as relating to administration.Inventory as at 31 March 20X3 was valued at £15,400.• Provision should be made for taxation at a rate of 20% of the profit after financecosts.Required:i. Prepare the company's Statement of Profit or Loss for the year ended 31 March 20X3, in aform suitable for publication, together with its Statement of Financial Position as at that date.Support your response with full workings.

Given to us is the trial balance and additional information for C L Worcester Ltd who provides…

Answered: Prepare the company’s Statement of…

Prepare the company’s Statement of Profit or Loss for the year ended 31 March 20X3, in a form suitable for publication, together with its Statement of Financial Position as at that date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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