Blyth Traders are a well-established wholesale business operating in the north of Englandand south Scotland. Their trial balance for year ended 31" December 2021 is presentedbelow:Dr [E]Cr (E]Non-current assets (cost):Plant and machinery150,000Vehicles100,000Premises600,000Accumulated depreciation (1-1-21):Plant and equipmentVehicles90,00050,000Premises96,000SalesSales returnsPurchasesCarriage inWages and salariesDiscounts allowedElectricity costsVehicle maintenanceAdvertising and marketingIrrecoverable debts829,0002,000335,00015.000114.0004.50037.5008,0002,50014,0003,000Allowance for receivablesBank1,50019,200Accounts payableAccounts receivable31,60060,000Inventory (1-1-21)91,700DrawingsBank loan [10%]Capital (1-1-21)60,000150.000324,9001.594.7001.594.700Additional notes:1) Inventory at 31" December 2021 was valued at £94,000. However, on 4thJanuary 2022 additional lines of inventory were uncovered that had not beenincluded in the previous count. At cost this inventory would be valued at £5,000but 50% of the items were damaged and would probably fetch £500 at auction.Auction fees would be £100.2) Salary bill for Blyth is £10,000 per month.3) The electricity charge represents 15 months payment to 1 March 2022.4) Blyth pays a local garage £800 per month for maintenance and fuel costs. Arrearsto be settled by the end of the first week in 2022.5) The contract for advertising is with a newly established local company and Blythhas supported the company by settling the contract from 1 January 2021 up tothe end of April 2022.6) Blyth decides at the end of 2021 to double the allowance on receivables.7) Blyth disposed of an item of plant in 2021 for £8,000. The plant had beenpurchased in 2018 at a cost of £40,000 (Blyth charges no depreciation in year ofdisposal). This transaction has not yet been recorded in the books of Blyth.8) Depreciation rates are:Premises, straight line over 50 years- Plant, 20% straight line- Vehicles, 50% reducing balance Required:(a)Prepare a statement of profit or loss for y/e 31st December 2021 and astatement of financial position as at that date.

Name: Blyth Traders are a well-established wholesale business operating in
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Description: Blyth Traders are a well-established wholesale business operating in the north of Englandand south Scotland. Their trial balance for year ended 31" December 2021 is presentedbelow:Dr [E]Cr (E]Non-current assets (cost):Plant and machinery150,000Vehic

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Blyth Traders are a well-established wholesale business operating in the north of England and south Scotland. Their trial balance for year ended 31" December 2021 is presented below: Dr (E] Cr [£] Non-current assets (cost): Plant and machinery 150,000 Vehicles 100,000 Premises 600,000 Accumulated depreciation (1-1-21): Plant and equipment 90,000 Vehicles 50,000 Premises 96,000 Sales 829,000 Sales returns 2,000 Purchases 335,000 Carriage in Wages and salaries 15,000 114,000 Discounts allowed 4,500 Electricity costs 37,500 2,500 Vehicle maintenance 8.000

Blyth Traders are a well-established wholesale business operating in the north of England and south Scotland. Their trial balance for year ended 31" December 2021 is presented below: Dr (E] Cr [£] Non-current assets (cost): Plant and machinery 150,000 Vehicles 100,000 Premises 600,000 Accumulated depreciation (1-1-21): Plant and equipment 90,000 Vehicles 50,000 Premises 96,000 Sales 829,000 Sales returns 2,000 Purchases 335,000 Carriage in Wages and salaries 15,000 114,000 Discounts allowed 4,500 Electricity costs 37,500 2,500 Vehicle maintenance 8.000

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Chapter7: Operating Assets

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Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...

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The following trial balance was extracted from the ledger of Juliana at 31 December 2020. Juliana Trial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000 Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases…
The following trial balance was extracted from the ledger of Juliana at 31 December 2020.JulianaTrial Balance as at 31 December 2020RMRMLand at cost26,000Plant at cost83,000Accumulated Depreciation at 1 January 2020- Plant13,000Office Equipment33,000Accumulated Depreciation at 1 January 2020Office Equipment8,000Receivables198,000Payables52,000Sales763,000Purchases516,000Returns inwards47,000Discount allowed4,000Capital at 1st January 2020230,000Drawings14,000Provision for doubtful debts at 1 January 202023,000Salaries Expense44,000Administration costs38,000Bank75,000Bad debts written off77,000Inventory at 1 January 202084,0001,164,0001,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciation on office equipment is charged at 20% per annum using the reducing balance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The allowance for receivables is to…
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