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QUESTION Picasso Ltd. has been trading for a number of years as a clothing wholesaler. The year- end is 30 April 2009 and the following trial balance has been extracted form the books Debite Credit e Ordinary Share Capital, El each 230,000 Profit and Loss Account at 1 May 2008 82,266 12% Debenture Loan (repayable 2019) 50,000 Plant at cost 173,750 Vehicles at cost 151,250 Provision for depreciation at 1 May 2008 Plant 50,000 Vehicles 40,550 Purchases 458,820 Sales 717,823 General Expenses 77,378 Wages & Salaries 126,965 Rent & Rates 9,675 Lighting & Heating 8,480 Bad Debts 1.696 Provision for Bad Debts at 1 May 2008 1,785 Debtors 59,000 Creditors 44,360 Stock (1 May 2008) 57,795 Debenture Interest 6,000 Bank Balance 85,975 1,216,784 1,216,784 You are given the following information: i. Stock at 30 April 2009 was 65,570 ii. Provision for depreciation 10% Straight Line on Plant 5% Reducing Balance on Vehicles Wages and salaries due at 30 April 2009 amounted to 1,305 iv. Rates paid in advance at 30 April 2009 amounted to 675 v. A dividend of 11,500 is declared before the year ended 30 April 2009 but not yet paid. vi. Provision for bad debts to be increased to 4% of Debtors vii. Corporation Tax is 2,850 but it is not yet paid. Required: Prepare the Income Statement and the Statement of Changes in Equity for the year ended 30 April 2009 Prepare the Statement of Financial Position) Balance Sheet as at 30 April 2009

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