Lirik's Co Trial Balance For the Year ended 31 Jan 20X2

$ $
000' 000'
Property,Plant & Equipment (PPE) 1078
Sales 1042
Bank 738
Discount Received 20
Allowance For Receivables 60
Receivables 150
Payables 1500
Purchases 170
Inventory at 1st Feb 20X1 60
Administration Expenses 200
Distribution Expenses 170
Finance Cost 40
Prepaid Cleaning Expense 16
Total 2622 2622

1) During the year a machinery was sold for $22000 which was
bought on 1st Feb 20X0 costing $50000. The company's policy to
depreciate machinery on straight line method over useful life of 5
years. The only entry made was debit to cash account and credit
to PPE . Any Profit or Loss should be added in admin expense.

2) Lirik's Co recorded a sale invoice of $100000 assuming that

customer was not expected to take discount but when the cash
was received subsequently customer takes the discount. No entry
was made for the cash reciept. The settlement discount rate is
2%.

3) Bank statement includes bank charges of $2000 which was not

yet recorded in cash book. Bank charges belongs to finance cost.

4) Closing inventory was valued at $50000

 4) Closing inventory was valued at $50000

5) Company paid $120000 For cleaning expense in advance for

the year ended 1st april 20X2 . The prepaid expense included in
trial balance relates to 20X1. Prepaid expense relates to admin
expense.

6) Estimated tax for the year was $ 50000.

TASK 1
The carrying amount of machinery $000 50

Loss on disposal of machinery $000 8

TASK 2
Lirik's Co Statement of Profit & Loss For the year ended 31 Jan
20X2
$
000'
Revenue 1040
Cost of Sales -160
Gross Profit 880
Distribution Expense -170
Administration Expense -212
Operating Profit 498
Finance Cost -42
Profit before Tax 456
Tax Expense -50
Net Profit 406