Mock Exam Question A

Birmingham PLC Trial Balance May 31, 2005 Bank Opening Stock Purchases Plant and Equipment Accumulated Depreciation Land and Buildings millions millions Debit Credit 35.00 20.00 125.00 40.00 10.00 20.00

Accounts payable 28.00 5 % Debentures 40.00 Share Capital 30.00 Retained earnings 7.00 Accounts receivable 30.00 Sales revenue 220.00 Rent & Rates 24.00 Utilities expense 13.00 Salary expense 28.00 Total 335.00 335.00 The following additional information is given: millions 1. Stock at May 31 2005 was 20.00 2. Prepaid rent 5.00 3. Provide depreciation on plant and equipment @ 10% under reducing balance method 4. Proposed dividends for the year 10.00 5. Tax for the year to be provided 11.00 Required: Prepare an income statement and balance sheet as at 31st May 2005. [Marks 33]