Question 1
Stanley Sloth Ltd’s :Statement of profit or loss/comprehensive income for the year
ended
31ST MARCH 2020
855,800
Revenue
(424068)
Cost of sales (w3)
431068
Gross profit
(93504)
Selling and distribution costs (w3)
(176202)
Administrative expenses (w3)
162026
Operating profit
(3300)
Finance costs (w4)
158726
Profit before tax
(55,000)
Tax
103726
Profit after tax
Other comprehensive income
Gain on revaluation (W4)
Total comprehensive income
Stanley Sloth Ltd’s : Statement of changes in equity for the year ended
Share Share Retained General Revaluation
Total
capital premium earnings reserve reserve
Balances at 51,040 82,510 119,240 252,790
start
Comprehensiv 103726 40000 143726
e income for
the year
Irredeemable (3300) (3300)
preference
dividends for
year (W )
Ordinary (8,800) (8,800)
dividends paid
Ordinary
dividends
declared
Transfer of
reserves
issue of 30000 0
shares (W )
Balances at 51040 82510
end
Stanley Sloth Ltd’s :Statement of financial position as at
£
Non-current assets
Property, plant and equipment (w4)
Equity investments
Current assets
Inventory (w3) 42900
Trade receivables (w2) 80850
Prepayments (w3) 2900
cash 7,040
Total current assets
Total assets
Equity and liabilities
Equity
Ordinary share capital (from SOCIE)
6% Irredeemable preference share capital, £1 55,000
Share premium(from SOCIE) 82,510
Retained profits(from SOCIE) 180866
Non-current liabilities
10% Loan (repayable 2034) 44,000
Current liabilities
Debt payable in less than 12 months
Trade payables
Accrued expenses
Tax payable
Accrued interest (W3)
Bank overdraft
Total liabilities
Total equity and liabilities
Stanley Sloth Ltd’s :Notes to the accounts for the year ended
1. Dividends proposed
2. Trade receivables
Balance at end of year 82500
Less: Doubtful debts at the year-end (
Reported balance
3. Property, plant and equipment
Property Plant Total
Cost
At start of year 290200 187000
New additions
Revaluation
Disposals
At end of year
Accumulated depreciation 20240 21000 41240
At start of year 20240 21000 37004
Disposals 3804 54200 78244
Depreciation for year (w3)
At end of year
Net book value
At end of year 306156 132800 438959
At start of year 269960 166000 435960
4. Ordinary share capital
Issued and fully paid up ___p ordinary shares
Number £
At start of year
Share issues
At end of year
WORKINGS IN £
1. Doubtful debts
Balance c/f at y/end (2% x 82500 1650
) FROM TB
Less: Balance at start of year (W1) (2640)
Change in year TO ADM EXP (990)
2. Trade receivables
Balance at end of year FROM TB 82500
Less: Doubtful debts at the year-end (w1) (1650)
Reported balance 80850
3. Expenses to SOPL
Selling
Cost of and
sales Admin distribution Total
Change in doubtful
(990)
debts (w1)
Insurance (14300- 3800 5700 1900 11,400
prepayed2900)
2:3:1 (11400x2/6)
{question says put it in
ratio of 2;3;1}
Carriage outwards 9900
Discounts allowed 22040
Inventory at 1.4.19 50,600
Motor expense 11,220
Office rantal expenses 17,800
purchases 338,000
Wages and salaries 73300 109950 36650 219900
(214,599 + 5400)
2:3:1
(42,900
Inventory at 30.3.20 )
Depretiation for the
year
Motor vehicles {20% x 33,200
(187,000-21000) }
Property [(308,000- 1268 1902 634 3804
17800-100,000)/50
years] 2:3:1
Totals to SOPL 424068 17620 93504
4. Property, plant and equipment
Total
£ £ £ £
Cost
At start of year
New additions
Revaluation
Disposals
At end of year
Accumulated depreciation
At start of year
Disposals
Depreciation for year (w3)
At end of year
Net book value
At end of year
At start of year
5. Other workings as necessary
CASH FLOW STATEMENT STATEMENTS TEMPLATES (SECTION B)
_______________________
Statement of cash flows for the year ended ____________
£ £
Operating activities
Profit before tax
Less: Finance income/investment income
Add: Finance cost/interest expense
Add/less increase/decrease in doubtful debts ( )
Add depreciation for the year (W )
Add/less loss/profit on disposal of non-current assets (W )
Operating profit before working capital changes
Less increase/add decrease in trade receivables ( )
Less increase/add decrease in inventories ( )
Add increase/less decrease in trade payables ( )
Cash generated from operations
Less: Tax paid (W )
Net cash flow from operating activities
Investing activities
Income received from investments
Cash paid to purchase tangible non-current assets (W )
Receipts from the sale of tangible non-current assets (W )
Cash paid for investments ( )
Receipts from the sale of investments ( )
Net cash flow from investing activities
Financing activities
Receipts from issue of new share capital ( )
Receipts from long-term borrowings ( )
Repayment of long-term borrowings ( )
Interest paid (W )
Dividends paid
Net cash flow from financing activities
Net increase/decrease in cash and cash equivalents
Opening cash and cash equivalents
Closing cash and cash equivalents
WORKINGS IN £
1. Interest and tax paid
Interest Tax
Opening liability
Add: Charge for the year (IS)
Adjusted balance
Less: Closing liability
Therefore: Paid in year
2: Profit or loss on disposal
Cash received
Less: Net book value of sold asset
Profit (or loss) on disposal
IF GIVEN INFORMATION ON COST AND ACCUMULATED DEPRECIATION
3. Depreciation for the year (using accumulated depreciation)
Accumulated depreciation b/f
Less: Disposal accumulated depreciation
Adjusted balance
Closing accumulated depreciation
Therefore: Depreciation in year
Accumulated depreciation b/f
4. Purchase of non-current assets (using cost)
Cost b/f
Revaluation
Less: Cost of sold asset
Adjusted balance
Cost c/f
Therefore: Bought in year
IF GIVEN NET BOOK VALUES ONLY (NOT COST OR ACCUM DEPRECIATION)
3. Depreciation for the year (using net book values only)
Opening net book value
Add: Revaluation gain
Less: Net book value of sold asset
Add: Bought in year
Adjusted balance
Closing net book value
Therefore: Depreciation for year
4. Purchase of PPE (using net book values only)
Opening net book value
Add: Revaluation gain ( )
Less: Net book value of sold asset
Less: Depreciation for year
Adjusted balance
Closing net book value
Therefore: Bought in year
