20180918_Hometask.docx - The following trial balance relates to Sindbad at 31 December 2017 mln $ mln $ Revenue(Note 1 760 Material purchases(Note 2 128

20180918_Hometask.docx - The following trial balance...

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The following trial balance relates to Sindbad at 31 December 2017: mln $ mln $ Revenue (Note 1) 760 Material purchases (Note 2) 128 Labour costs (Note 2) 248 Production overheads (Note 2) 160 Distribution costs 30 Administrative expenses (Note 3) 93 Finance costs 2 Investment income 3 Plant and equipment – at cost (Note 2) 190 Accumulated amortisation/depreciation of plant and equipment at 1 January 2017 50 Financial asset: equity investments 36 Inventory at 1 January 2017 94 Trade receivables 67 Trade payables 56 Bank (overdraft) 5 Equity shares of 20 cents each 100 Retained earnings at 1 January 2017 68 Current tax liability 6 1,048 1,048 Notes The following notes are relevant: 1. Revenue includes goods sold and dispatched in December 2017 on a 40-day right of return basis. Their selling price was $5 million and they were sold at a gross profit margin of 25%. According to the accounting policy the profit shouldn't be recognised till the end of the return period.
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  • Spring '16
  • Robert Stavins
  • Depreciation, Generally Accepted Accounting Principles, Sindbad

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