Financial Statement
Paper, Order, or 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
