BAC1 (BSM 1313)
2004/2005
Supplementary Continuous Assessment

The following additional information was provided at 31 December 2003:

1. The closing stock at 31 December 2003 valued at cost was $155,000
with the net realizable value $140,000.

2.  Depreciation was to be provided at the following rates per annum

- - plant & machinery at 10% using the reduucing balance method;

- - land and building at 15% using the straaight line method.

2. $2,000 electricity expense was unpaid at year end.

3. Due to a problem in the computerized payroll system, the company
owed the salary of a staff in the amount of $8,000.

4. The company prepaid $5,000 for rent & rate expense.

5. The provision for doubtful debts should be increased to $19,000 at the
end of the year.

Required:

(i)a Trading and Profit and Loss Account for the year ended 31 December
2003; and                                                    (24 marks)
(ii)a Balance Sheet as at 31 December 2003                   (16 marks)
(Total: 40 marks)

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