Initial TB Adjustment Final TB SPL
DR CR DR CR DR CR DR
Share capital 800 100 900
Irredeemable preference share 200 200
Trade receivables 1820 15 1805
Trade payable 1866 1866
Cash at bank 80 30 50
Inventory 1950 2020 1950 2020
Loan notes 1000 1000
Sales 9500 9500
Rental income 200 200
Loan note interest 30 30 60 60
Admin + general expenses 650 570 1220 1220
Admin salaries 275 275 275
Distribution expenses 616 275 891 891
Purchases 5125 5125 0
Manufacture salaries 300 300 0
Delivery inward 100 100 0
Property cost 300 300 0
Retained earnings 1100 100 1000
Freehold land, at cost 2120 2120
Fixture & Fitting 2000 2000
Acc.dep 900 400 1300
Allowance for receivables 100 100 200
Goodwill 300 30 270
Cost of sales 7475 2020 5455 5455
Income tax expenses 750 750 750
Tax payable 750 750
Profit for the year 1049
Total 15666 15666 11220 11220 16916 16916 9700
SPL SFP
CR DR CR
900
200
1805
1866
50
2020
1000
9500
200
0
0
0
0
1000
2120
2000
1300
200
270
750
1049
9700 8265 8265
STATEMENT OF PROFIT OR LOSS STATEME
Sale 9500 ASSETS
Cost of sales -5455
Gross profit 4045
Other income 200
Distribution costs -891
Administrative costs -1495
Loan note interest -60
Profit before tax 1799
Income tax -750
Profit for the period 1049
Total ASSETS
EQUITY & LIABILITIES
Total EQUITY & LIABILITIES
STATEMENT OF FINACIAL POSITION
Current assets
Trade receivables 1805
Bank (Cash&Cash equivalents) 50
Inventory 2020
Allowance for receivables -200
Non-current assets
Accumulated depreciation -1300
Freehold land 2120
Fixture & Fittings 2000
Goodwill 270
6765
EQUITY
Equity shares 900
Retained earnings 2049
10% Irredeemable Preference shares 200
Total Equity 3149
LIABILITIES
Current liabilities
Trade payables 1866
Tax payables 750
Non-current liabilities
6% Loan notes 1000
Total liabilities 3616
6765
