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Financial Statement

Assignment Requirements
 
 
A friend of yours, a self-employed accountant, has asked you to assist him in preparing a set of accounts from one of his clients account records.
 
Using the following information, you are required to complete the following tasks for the year ending 30th November 2013:-
 

Open up a set of ledger accounts starting from last year’s Balance Sheet information
Post the year’s transactions to the appropriate ledger
Account for any transactions that may not be complete at the year end
Balance the ledger accounts
Prepare a Trial Balance
Prepare a Trading/Profit and Loss Account
Prepare a Balance Sheet
Prepare a cash flow statement for the year just ended
Offer up a commentary as to how you think the Business has performed over the year

 
Sue and Angie – Balance Sheet as at 30th November 2012
 

FIXED ASSETS
COST
 
DEPN
 
NBV

BV
 
 
 
 
 

Vehicles
26,000
 
10,000
 
16,000

Plant and Equipment
149,000
 
106,000
 
43,000

Land and buildings
285,000
 
241,400
 
43,600

 
460,000
 
357,400
 
102,600

 
 
 
 
 
 

CURRENT ASSETS
 
 
 
 
 

Bank
 
 
55,600
 
 

Cash
 
 
3,200
 
 

Trade Debtors
54,100
 
 
 
 

Provision for Doubtful Debts
(2,700)
 
54,400
 
 

Stock
 
 
5,150
 
 

Insurance, prepayment
 
 
1,700
 
 

 
 
 
117,050
 
 

 
 
 
 
 
 

CURRENT LIABILITIES
 
 
 
 
 

Trade Creditors
 
 
49,800
 
 

Accruals
 
 
 
 
 

          Telephone
 
 
1,600
 
 

          Light and heat
 
 
1,900
 
 

          Wages
 
 
4,100
 
 

          Accountancy
 
 
3,150
 
 

 
 
 
60,550
 
 

 
 
 
 
 
 

NET CURRENT ASSETS
 
 
 
 
56,500

 
 
 
 
 
159,100

LONG TERM LIABILITY
 
 
 
 
 

          10% Bank Loan
 
 
 
 
42,000

 
 
 
 
 
 

NET ASSETS
 
 
 
 
117,100

 
 
 
 
 
 

CURRENT ACCOUNT
 
 
 
 
 

          Sue
 
 
25,600
 
 

          Angie
 
 
26,800
 
52,400

 
 
 
 
 
 

CAPITAL ACCOUNT
 
 
 
 
 

          Sue
 
 
32,300
 
 

          Angie
 
 
32,400
 
64,700

 
 
 
 
 
 

 
 
 
 
 
117,100

 
 
Prepared by A J Carte FCA   January 2013
 
 
Sue and Angie
Notes to the Accounts for the year ended 30th November 2013
 
 

Trading figures
 

Sales for the year
510,000

Purchases for the year
269,400

Sales returns by customers
27,900

Purchase returns to Suppliers
8,300

 
 

Cheques paid out
 

Wages
98,500

Motoring expenses
8,900

Heat and Light
5,600

Accountancy
4,400

Insurance
3,800

Telephone and Broadband
7,600

Premises Upkeep
4,100

Computer Equipment (plant)
6,500

Motor Vehicle
15,500

Suppliers
261,000

Drawings
 

         Angie
24,000

         Sue
22,000

 
 

Cheques received
 

From customers
505,000

From Sue
4,800

From Angie
4,200

 
 
Other information relating to the accounting year, to be accounted for
 
A vehicle purchased in September 2010 for £10,000 was sold for £6,500
 
Depreciation rates are to be calculated as follows:-
 
Plant                                     10% RB
Motor Vehicles                 15% SL
Land and Buildings             2% SL
Depreciation is provided 100% in year of purchase and NIL % in year of sale.
 
Closing stock is valued at £5,400.
 
£3,400 of the closing debtors are considered to be uncollectable.
 
The doubtful debt provision is to be set at 5% of year end Debtors.
 
The following were outstanding and unrecorded at 30th November 2013
 
Telephone                           £2,000
Heat and Light                    £1,100
Wages                                   £3,400
Accounting                          £2,750
 
No loan repayments or interest have been paid in the year.
 
Sue has taken £1,900 of stock for her personal use.
 
Angie has used £500 cash to buy a season ticket at Anfield.
 
Sue has used £600 cash to pay for a holiday in Italy.
 
Cash Discounts received from suppliers total £2,800.
 
Profits are shared equally.  No interest is charged on Capital or Current Account Balances.  At the end of the accounting period a transfer is made between current accounts in order to ensure that drawings for the year are the same for each partner.
All transactions relating to the partners during an accounting period are to be recorded in the Current Accounts of the partners.
 
Weighting                                      %
Ledger Accounts                        40
Trial Balance                                 10
Final Accounts                             30
Cash flow Statement               10
Final Commentary                     10
 
 
 
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