Phoenix plc trial balance at 30 June 20X7 was as follows — The following information available — Freehold premises acquired for million were revalued 20X4 recognizing gain 600 000

Phoenix plc trial balance at 30 June 20X7 was as follows:

.:.

The following information is available:

1. Freehold premises acquired for £1.8 million were revalued in 20X4, recognizing a gain of £600,000. These include a warehouse, which cost £120,000, was revalued at £150,000 and was sold in June 20X7 for £225,000. Phoenix does not depreciate freehold premises.

2. Phoenix wishes to report Plant and Machinery at open market value which is estimated to be £1,960,000 on 1 July 20X6.

3. Company policy is to depreciate its assets on the straight-line method at annual rates as follows:

Plant and machinery ….. 10%

Furniture and fittings ….. 5%

4. Until this year the company’s policy has been to capitalize development costs, to the extent permitted by relevant accounting standards. The company must now write off the development costs, including £124,000 incurred in the year, as the project no longer meets the capitalization criteria.

5. During the year the company has issued one million shares of £1 at £1.20 each.

6. Included within administrative expenses are the following:

Staff salary (including £125,000 to directors) ….. £468,000

Directors’ fees ……………………………………. £96,000

Audit fees and expenses ………………………….. £86,000