Complete tasks A, B, C and D using the following financial information for Premier Construction & Manufacturing Ltd.
Premier Construction & Manufacturing Ltd.
Trial Balance as at 30 September 2024
Debit (£)
Credit (£)
Purchases
16,174,098
Wages
6,324,987
Freehold Land and Buildings
33,750,000
Bank Balance
58.933
Inventory at 01-10-23
598,763
Motor Expenses
157,893
Sales
36,542,761
Vehicles: Cost
2,100,000
Sundry Expenses
85,131
Drawings
872,561
Administration Expenses
72,873
Bank Loan (repayable on 31-08-29)
21,500,000
Sales Returns
276,419
Plant and Machinery: Cost
11,150,000
Shareholder Equity
11,125,000
Retained Earnings at 01-10-23
1,432,867
Vehicles: Accumulated Depreciation at 01-10-23
625,000
Rent
2,533,901
Purchase Returns
317,820
Trade Payables
842,610
Plant and Machinery: Accumulated Depreciation at
01-10-23
3,375,941
Advertising
583.025
Electric Expenses
143,872
Trade Receivables
879,543
Total
75,761,999
75,761,999
Additional Information:
a) No depreciation had been charged in the current year.
(i) Plant & Machinery are to be charged at 16.5% Reducing Balance.
(ii) Vehicles are to be charged using a Straight Line basis with a Life Expectancy of 4 years and an expected sale price of £850,000.
b) The rent value is made up of 2 invoices. The second rent invoice (totalling £1,375,380) is for 6 months but 2 of those relate to the next financial year.
c) A Credit Customer has returned £83,050 goods.
d) You have incurred Motor Expenses of £28,744 that have yet to be invoiced for.
e) Inventory of £653,701 was recorded on 30-09-2024.
Tasks:
A. Complete the Adjustments for Premier Construction & Manufacturing as at 30-09-2024.
B. Produce an Updated Trial Balance as at 30-09-2024.
C. Create an Income Statement for the year ended 30-09-2024
D. Create a Statement of Financial Position for the year.