Limited companies — practice question

The directors of DW Limited gave the following figures at 30 September 2020. 6% debentures (2028) $18000 Bank overdraft $6450 Dividend paid $2000 General reserve at 1 October 2019 $6500 Inventory at 30 September 2020 $26300 Issued share capital at 1 October 2019 $200000 Non-current assets at 30 September 2020: Cost $462000, Provision for depreciation $106000 Other payables $2200 Other receivables $1600 Provision for doubtful debts at 1 October 2019 $625 Retained earnings $73475 Trade payables $8250 Trade receivables $14500 Further information: A draft income statement for the year ended 30 September 2020 was drawn up and showed profit of $84900. Errors discovered: 1 Inventory of $26300 included items valued at cost $5200 that needed repair. After repairs costing $600, the items could be sold for $5000. 2 Operating expenses included insurance of $400 that was prepaid at 30 September 2020. 3 The provision for doubtful debts should have been adjusted so that it equals 5% of trade receivables. The directors resolved to transfer $5000 to general reserve. There was no alteration to the issued share capital during the year ended 30 September 2020.