Before you can answer questions 1-13, please prepare the trial balance, statement of profit or loss and statement of financial position as your working

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Before you can answer questions 1-13, please prepare the trial balance, statement of profit or loss and statement of financial position as your working. The following list of account balances have been provided by NGC Plc on 31 December 2016, which is the end of the company's accounting period:Share capital K670, 000; Retained earnings - 1 January 2016 K413, 500; Land at cost K540, 500; Buildings at cost K230, 000; Accumulated depreciation - buildings - 1 January 2016 K15,000; Factory plant and equipment at cost K210, 000; Accumulated depreciation - Plant and equipment - 1 January 2016 K78, 500; Furniture and fittings at cost K170, 000; Accumulated depreciation - furniture and fittings - 1 January 2016 K10, 750; Motor vehicles at cost K190, 000; Accumulated depreciation - motor vehicles K50, 000; 10% loan notes K70, 000; Trade receivables K172, 630; Trade payables K252, 500; Bank overdraft K6, 250Inventories at cost - 1 January 2016 is as follows: Raw materials K400, 650; Finished goods K160, 000; Work-in-progress K65, 000; Purchases - raw materials K640, 600; Carriage - raw materials K20, 500; Purchase returns - raw materials K20, 000; Manufacturing wages K200, 000; Manufacturing overheads K325, 000; Direct expenses K100, 000; Cash and bank K5, 120; Sales K1, 538, 750; Administrative expenses K28, 100; Selling and distribution expenses K216, 000; Loan note interest K54, 900; Bank charges K5, 000;Suspense (Credit balance) K508, 750.Inventories at 31st December 2016 were: Raw Materials K6, 600; Finished goods K2, 350; Work in progress K4, 500.Sales of K254, 375 had been debited to the bank account and the sales account. Depreciation for the year is to be charged as follows: Plant and equipment 15% on reducing balance - charged to production; Buildings 10% on reducing balance charged to administration; Furniture and fittings 30% on reducing balance charged to administration; Motor vehicles; 25% on reducing balance charged to selling and distribution. In addition to the above information, the following has also been provided:10% of administrative expenses shown in the trial balance relate to rent paid for the month of January 2017; Salesmen's salaries of K26, 000 for the month of December 2016 were not been paid until January 5th 2017; A bad debt of K14, 000 that had previously been written off was paid on 31st December 2016 by cheque; A motor vehicle with an initial cost of K50, 000 and accumulated depreciation of K10, 000 was sold at a loss of K2, 000. Q1. What is the value of the trial balance totals at the year end.

4 points

 

3,734,000

 

3,374,000

 

4.242,750

 

2. What is the prime cost in the manufacturing account?

4 points

 

1,334,650

 

1,335,150

 

1,055,150

 

3. What is the total depreciation charge for all the non-current assets that will be charged to the statement of profit or loss for the year?

3 points

 

287,520

 

278,250

 

269,250

 

4. What is the total carrying amount (after depreciation)of all the non-current assets at the end of the year?

3 points

 

1,623,452

 

1,789,256

 

1,022,250

 

5. What is the value of cost of goods completed carried down to the cost of sales?

3 points

 

1,740,375

 

1,699,875

 

1,619,375

 

6. What is the balance on the cash and bank account at the end of the year?

5 points

 

14,000

 

59,120

 

50,870

 

7. What is the total value of administrative expenses carried down to the statement of profit or loss at the year end?

2 points

 

25,290

 

94,565

 

97,375

 

8. What is the value of selling and distribution expenses carried down to the statement of profit or loss at the year end?

1 point

 

251,000