Nominal ledger closing balances as at 31 March 2013

Nominal ledger closing balances as at 31 March 2013
8% loan (repayable in 10 years)
Plant and equipment at cost
Accumulated depreciation on plant and equipment
Motor vehicles at cost
Accumulated depreciation on motor vehicles
Inventory as at 1 April 2012
Bank (debit balance)
Heating and lighting
Salaries and wages
Administration expenses
Distribution costs
Suspense account (credit balance)
Allowance for receivables
Relevant additional information regarding post-trial balance adjustments is below. 1 Closing inventory as at 31 March 2013 had a cost of £95,000. Included in this amount were some items, costing £9,000, that were out of fashion. John decided to mark these items down to £6,000 for a quick sale. 2 On further investigation of the suspense account in the trial balance, John discovered: l Cash expenses of £9,360 had been posted to the suspense account. This was a cash payment for advertising. l A cash receipt of £12,000 had been posted to the suspense account. This represented an amount of income not recorded previously in any nominal ledger account. 3 During 2013, John hired a truck with special lifting equipment to help with deliveries. £36,000 has been paid in advance under the truck hire agreement, which covers two years’ hire and began on 1 January 2013. The £36,000 has been debited in error to the purchases account in the nominal ledger. 4 John depreciates non-current assets as follows: l plant and equipment at 10 per cent on a straight-line basis l motor vehicles at 20 per cent on a straight-line basis.There are no non-current assets that have a residual value. No depreciation for the year ended 2013 has been entered into the accounting records. A full year’s depreciation is charged in the year of acquisition. No depreciation is charged in the year of disposal. In November 2012, John sold a delivery van for £2,000 in cash. The vehicle had originally cost £20,000 and on 1 April 2012 the net book value of the van was £4,800. In January 2013, the cash received from the disposal of the delivery van was used to buy a second-hand car costing £2,000. No entries have been made in the nominal ledger accounts for the disposal of the van or the purchase of the company car. 5 A full year’s loan interest is to be accrued. 6 No heat and lighting costs for the month of March 2013 have been recorded in the accounting records. The next quarter’s charge for heat and lighting is expected to be £10,3807 John has been advised to write-off a trade receivable of £9,300 and to make an allowance for irrecoverable receivables of 5 per cent of the outstanding receivables at the year-end. No entries have been made in the nominal ledger accounts. 8 John paid a year’s rent in advance on 1 November 2012. The rental payment was £60,000 and this was included in the rent total in the trial balance as at 31 March 2013.(a) Using the list of closing balances as at 31 March 2013, prepare a trial balance and identify the closing balance of the ledger account, which has been omitted from the list of closing balances. (b) Using the trial balance prepared in Question 2(a) and the further information provided about the necessary post-trial balance adjustments, prepare an income statement and a balance sheet for John Porter for the year ended 31 March 2013

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