Statement of total comprehensive income | business

reflection paper 239 – Essay WritersMay 15, 2021Data entry specialist | Computer Application & Office ProfessionalMay 15, 2021  SECTION A The trial balance for Diologics plc as at 31 March 2021 is given below:  £’000 £’000 Cost of sales and Revenue 4,000 12,000 Inventories as at 31 March 2021 750 Distribution Costs 2,200 Administrative Expenses 3,400 Loan Interest Paid 130 Land at valuation as at 1 April 2020 3,000 Buildings – Written Down Value at 31 March 2021 2,040 Plant and Equipment – Written Down Value at 31 March 2021 2,770 Trade Receivables and Payables 1,250 540 Allowance for Receivables 50 Bank 25 240 Ordinary Share Capital (£1 Shares) 4,000 Share Premium 50 Revaluation reserve 200 5% Bank loan, repayable 2023 2,000 Retained earnings 610 Current Tax 10 Deferred Tax as at 1 April 2020 35 Ordinary Dividends paid 150  19,732 19,732 The following notes are also relevant: 1. Land is non-depreciable and is to be revalued at £4 million on 31st March 2021. 2. The tax written down value of Diologics’ assets at 31 March 2021 was £300,000 less than their reported book values in the financial statements. The income tax rate applicable to Diologics is 25%. 3. Diologics leased new testing equipment on 1 January 2021. The cash price of the equipment is £275,000 and the lease term is 5 years. Diologics must pay £65,950 annually in advance. The company uses the actuarial method to allocate the finance charge at a rate of 10% per annum. There is no depreciation charged in the year of acquisition. The first lease payment has been treated as an expense under distribution expenses.  C39CA Page 3 of 8 Semester 2 – 2020/21 4. The tax liability for the current year is estimated to be £130,000. The balance on the Current tax liability account represents the difference between the tax liability estimate included in the accounts last year and the amount due and paid. 5. Diologics is about to start building 20 smart meters for an Industrial park. The work should be finished by October 2021 and they will then be transported to the industrial park and installed. The total value of the contract is £2 million. The customer has paid Diologics £400,000 deposit in advance of the work starting, to help cash flow for the purchase of raw materials etc. This amount has been included in revenue.   “Is this question part of your assignment? We Can Help!”

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