Question

W8 Q Question: The following account balances are prepared by accountants before the additional information listed below has become available to them. Accrued expenses Premises at cost Accumulated depreciation - Premises Opening inventory Motor vehicles at cost Accumulated depreciation - Motor vehicles Sales Office equipment at cost Accumulated depreciation - Office equipment Purchases Trade receivables Retained profits Trade payables Bank 10% Debenture 2049 Administrative expenses Issued share capital of 25p each Selling and distribution expenses Additional information: £ 49,700 500,000 80,000 200,000 310,000 229,500 3,450,000 78,000 47,400 2,660,000 184,000 41,600 184,000 272,800 150,000 450,400 600,000 177,000 1. Depreciation has not been charged on all non-current assets. The company has the following depreciation policies: premises are depreciated at 2% on cost, motor vehicles at 25% on cost and office equipment at 15% on a reducing balance basis. 2. At the year-end, accrued administration expenses to the value of £14,000 have not been paid while selling and distribution expenses are prepaid by £9,000. 3. The closing inventory at the year-end is estimated to be £300,000. 4. Interest incurred on the debenture has not been paid before the year end. 5. During the year the directors have proposed, but have not paid, a dividend of 5p per share. All shares in issue are entitled for dividend. 6. The tax rate for the company is 24 per cent of the profit before tax. The tax will be paid within nine months following the end of the financial year. Required: Prepare an Income Statement and a Statement of Financial Position based on the above additional information. (Work to the nearest whole number)

create a proper statement table please .​

Answer 1

The bank's balance sheet reflects a net worth of £220, calculated by subtracting the total liabilities from the total assets according to the provided figures.

Step-by-step explanation:

Creating financial statements requires accounting for all assets, liabilities, equity, revenues, and expenses to present the financial condition and performance of a company. According to the provided data, we will calculate and report the additional depreciation on premises, motor vehicles, and office equipment, the impact of accrued administration expenses and prepayments, the closing inventory adjustment, the unpaid interest on debentures, the proposal of dividend payments, and the corporate tax expenses.

Bank's T-account Balance Sheet

Assets:
- Reserves: £50
- Government Bonds: £70
- Loans: £500

Liabilities:
- Deposits: £400

To calculate the net worth, we subtract liabilities from assets. Here, Assets (£50 + £70 + £500) = £620, Liabilities = £400, so Net Worth = £620 - £400 = £220.