Question 1: Huby Edge Enterprise has been operating in the textile sector for the last five years. It has produced the given trial balance for the year ended June 2012.
You have been given with the following additional information:
a) Inventory at 30 June 2012 was valued at Rs 92,800.
b) Insurance expenses comprise an amount of Rs 20,000 that covers the period July 2012 to September 2012.
c) Electricity Expenses outstanding for the year ended 30 June 2012 were Rs 2,700.
d) An amount of Rs15,800 has already been paid for a spot publicity that will be televised throughout the month of August 2012.
e) Based on precedent experience, the allowance for doubtful debts is to be adjusted to 6% of trade receivables.
f) Credit sales invoice amounting to Rs 3,450 for goods delivered to customers was wrongly dated 15 July 2012 rather than 15 June 2012.
As such this figure is not comprised in the sales revenue and trade receivables figures.
g) Depreciation is to be charged as shown:
i) Buildings at 5% of cost.
ii) Motor vehicles at 10 % of cost.
iii) Equipment at 20% of written down value.
Required:
1) Make the Income Statement for the year ended 30 June 2012.
2) The Balance Sheet as at 30 June 2012.
3) There are seven main users of accounts with each group having diverse information needs. Identify five users of accounts for a Textile Company and describe how their information needs can be addressed in the annual report.