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