2. From the following Trial Balance, prepare an income statement and a statement of financial position for Air Tight Limited as of 31/12/20—. The business has an authorised share capital of e300,000.
Details Sales Purchases
Opening stock as at 1/1/20— Purchases returns Sales returns
Debtors and creditors
Marketing and advertising Import duties Wages
Commission receivable Cash
Buildings
Computers Reserves
Issued share capital 15 year loan
687,000
120,000 3,000
11,000 9,000
95,000 21,000 11,000 40,000
6,000
350,000 32,000
35,000
200,000 90,000
687,000
You are given the following additional information as on 31/12/20—. • Closing stock: e21,000 • Depreciation: Computers 10%
