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Polymer is a limited liability company with the following
Dr Cr
$000 $000
Distribution costs 250
Administrative expenses 126
Salaries 1,180
Discounts received 88
Sales 9,427
Property expenses 290
Returns inward 166
Cash 27
Insurance 130
Purchases 6,248
Inventory at 1 November 2017 610
Bank 311
Loan note interest 58
Share premium account 350
Allowance for receivables at 1 November 2017 70
Trade payables 507
Trade receivables 1,700
7% Loan notes 822
Receivables expense 260
$1 Ordinary shares 2,850
Dividends paid:
Final for year ended 31 October 2017 200
Land at cost 1,295
Buildings at cost 2,640
Motor vehicles at cost 420
Furniture and equipment at cost 800
Buildings 625
Motor vehicles 140
Furniture and equipment 335
––––––– _______
16,400 16,400
Further information relating to Polymer:
- The insurance includes $10,000 which relates to November 2018.
- Buildings are
depreciated at 5% of cost. Building depreciation during the year is allocated 50% to distribution costs and 50% to administrative expenses. - At 31 October 2018 the buildings were professionally valued at $3,150,000 and the directors wish this valuation to be incorporated into the accounts.
- Depreciation is to be charged as follows:
- Motor vehicles at 25% of written down value, allocated to distribution costs
- Furniture and equipment at 20% of cost, allocated to administrative expenses.
- Inventory at 31 October 2018 was valued at $480,000 based on its original cost.
- Based on past experience the allowance for receivables is to be increased to 5% of trade receivables and allocated to administrative expenses.
- There are salaries outstanding of $60,000 for the year ended 31 October 2018.
- The items listed below should be apportioned as indicated:
Cost of Distribution Administrative
Sales Costs Expenses
- Property expenses 20% 30% 50%
- Insurance 20% 40% 40%
- Salaries 25% 35% 40%
- Discounts received 100%
- Tax of $120,000 is to be provided for the year.
You are required to
prepare the statement of comprehensive income for the year ended 31 October 2018 in accordance with IAS1.
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