Statements

Question 1

Balance sheet layout

Answer 1

Non current assets
Current assets
Equity (retained profit, ordinary shares etc
Non current liability (loans (check date )
Current liability

Question 2

Profit and loss

Answer 2

-Sales revenue
-Cost of goods sold (open inv+purchases + anything relating to production that’s says to be used in COGS- closing inv)
-Gross profit
Admin expenses
Distribution expenses (marketing and distribution)
-Operating profit
-Financial costs
-Profit before tax
-Tax
Profit for the year (+ to retained profit)

Question 3

Depreciation

Answer 3

Of cost/straight line - cost - (% of dep of cost + accumulated dep)

Reducing balance (cost-accumulated dep) x percentage dep

LAND DOES NOT DEPRECIATE

Question 4

Bad debts

Answer 4

If on the trial balance no need to calculate

Otherwise off of TR and it’s an expense

Question 5

Proposed dividends

Answer 5

Do not go in statements as they have not occurred just put in notes