ICAEW Accounting

MOCK 2

SECTION B
1.
Rosemary plc's trial balance as at 31 March 20X2 is shown below.

£'000 £'000
Ordinary share capital (£1 shares) 5,000
Share premium 1,250
Trade payables 1,684
Plant and equipment – cost 25,975
Plant and equipment – accumulated depreciation 13,500
Land and buildings – cost 20,000
Land and buildings – accumulated depreciation 11,345
Trade receivables 2,666
Accruals at 31 March 20X2 161
6% bank loan repayable in 15 years 15,000
Cash at bank 3,223
Retained earnings 5,744
Interest paid 900
Gross profit 10,429
Closing inventories 5,084
Distribution costs 2,321
Administrative expenses 2,794
Dividends paid 1,150
64,113 64,113
Further information:
1) Depreciation has already been provided on all non-current assets for the year ended
31 March 20X2.
2) On 31 March 20X2 plant with a carrying amount of £12,063,000 was found to have a
value in use of £10,625,000 and fair value less disposal costs of £10,000,000. .
Impairment losses are charged to administrative costs.
3) The company hired some office copiers for the period 1 March 20X2 to 30 June 20X2.
The contract price for the four months was £205,333 and this was paid in full on 3
March and was charged to administrative expenses.
4) The company sourced extra warehousing space, for the storage of goods prior to their
sale, for a period of three months from 1 February 20X2 to 30 April 20X2. No invoice
was received in respect of the rental in the year ended 31 March 20X2, but a payment
of £142,500 for the three months was made and correctly accounted for on 16 April
20X2.
5) The corporation tax charge for the year has been calculated as £1,093,000.
6) On 15 April 20X2 one of the company's customers went into liquidation. Trade
receivables at 31 March 20X2 include a balance of £119,000 owed by this customer.
The directors have been advised that they are unlikely to receive any of this amount.
Irrecoverable debts are written off to administrative expenses.
7) Rosemary plc made a 1 for 5 bonus share issue during the year from share premium,
which has not yet been accounted for.
8) A cheque sent to a supplier for £32,000 has been incorrectly recorded as £23,000.
Requirement
Prepare the statement of profit or loss for Rosemary plc for the year ended 31 March 20X2
and the statement of financial position at that date.
 ICAEW Accounting
MOCK 2

Statement of profit or loss for the year ended 31 March 20X2

£
Gross profit
Distribution costs
Administrative expenses
Profit / (loss) from operations
Finance costs
Profit / (loss) before tax
Income tax expense
Profit / (loss) for year
Statement of financial position at 31 March 20X2
£
ASSETS
Non-current assets
Land and buildings
Plant and equipment
Current assets
Inventories
Trade receivables
Prepayments
Cash and cash equivalents
Total assets

EQUITY AND LIABILITIES

Equity
Ordinary share capital
Share premium
Retained earnings
Non-current liabilities
Borrowings
Current liabilities
Trade payables
Accruals
Income tax payable
Total equity and liabilities