1. From the following Trial Balance, prepare an income statement and a statement of financial position for Lemon Jelly Limited as of 31/12/20—. The business has an authorised share capital of e500,000.
Details Sales Purchases
Opening stock as at 1/1/20— Purchases returns Sales returns
Debtors and creditors
Marketing and advertising Office administration Wages
Rent receivable Bank overdraft Buildings
Motor vehicles Machinery
Retained earnings (profit and loss)
Issued share capital 15-year loan
773,000
100,000 8,000
1,000 9,000
13,000 6,000
15,000 60,000
3,000 7,000
400,000 120,000 42,000
46,000
351,000 50,000
773,000
You are given the following additional information as on 31/12/20—. • Closing stock: e25,000 • Depreciation: Vehicles 5%. Machinery 10%.
