Gce Model Questions Vol1 2017 Financial Accounting Question 32

Alpha Ltd prepared the trial balance shown below (all figures in £). Some amounts are missing and must be worked out from the information given. Trial Balance (Dr / Cr): Cash 12,000 Dr Debtors 8,500 Dr Inventory 15,000 Dr Pre‑payments 2,000 Dr Plant and Machinery 45,000 Dr Accumulated Depreciation - Plant 9,000 Cr Trade Payables 6,500 Cr Bank Loan 20,000 Cr Share Capital 30,000 Cr Share Premium 5,000 Cr Retained Earnings (b/f) 10,000 Cr Sales 60,000 Cr Cost of Goods Sold 35,000 Dr Wages 7,500 Dr Rent 4,800 Dr Interest Expense 1,200 Dr Depreciation expense for the year on Plant and Machinery is 20% of (cost less accumulated depreciation at the start of the year). At year‑end inventory was counted at £13,500. Bad debts written off during the year amounted to £800. Closing Debtors after providing for doubtful debts at 5% of closing Debtors is £7,200. Using this information, determine the profit for the year.