SOFP and SOPL

Malright, a limited liability company,has an accounting year end of 31 October. The accountant is preparing the financial statements as at 31 October 2017 and requires your assistance. The following trial balance has been extracted from the general ledger.

Dr Cr
$000 $000
Building at cost 740
Building accumulated depreciation,1 November 2016 60
Plant at cost 220
Plant accumulated depreciation,1 November 2016 110
Bank balance 70
Revenue 1800
Net Purchases 1140
Inventory at 1 November 2016 160
Cash 20
Trade payables 250
Trade Receivables 320
Administrative Expenses 325
Allowance for receivables at 1 November 2016 10
Retained Earnings at 1 November 2016 130
Equity Shares, $1 415
Share Premium Account 80
Total 2925 2925

Additional Information:
-Allowance for receivables is to be increased to 5% of trade receivables . The allowance for receivables is treated as an administrative expense.

-Plant is depreciated at 20% per annum using the reducing balance method and buildings are depreciated at 5% per annum on their original cost.Depreciation is treated as a cost of sales expense

-Closing inventory has been counted and is valued at $75000.

-An invoice of $15000 for energy costs relating to the quarter ended 30 November 2017 was received on 2 December 2017.Energy costs are included in administrative expenses.

Required:

Prepare the Statement of Profit or Loss and the Statement of Financial position of Malright Co as at 31 October 2017.
–
.