Question

Question 2: From the following account balances to 30 June 2020 prepare a statement of financial position in the narrative classified format. Note: you will need to determine the balance of the retained earnings.                                                          

Type of Account	$
Accounts Receivable	46500
Provisions	50000
Prepayments	1200
Sales Revenue	455000
Plant and Equipment	220000
Other Current Assets	11000
Borrowings	120000
Interest on Borrowings E	6000
Accumulated Depreciation	48500
Accounts Payable	26000
Share Capital	450000
Land and Buildings	339000
Inventory	78000
Two Year Term Deposit	98500
Cash at Bank	32000
Retained Earnings	?
Salaries expense	215000
Salaries Accrued	12500
Insurance Expense	9000
Annual Depreciation	22000
Utilities Expense	8500
Selling Expenses	25000

Answer 1

Let us Balance the Trial Balance to get opeing
Retained Earning
Trial Balance
Accounts	Dr	Cr
AR	46,500
Provision		50,000
Prepayments	1,200
Sales Revenue		455,000
Plant & Equipment	220,000
Other Current Asset	11,000
Borrowings		120,000
Interest on Borrowing	6,000
Accumulated Depreciation		48,500
Accounts Payable		26,000
Share Capital		450,000
Land & Building	339,000
Inventory	78,000
Term Deposit-2Yr	98,500
Cash at Bank	32,000
Retained Earning	50,300
Salaries Expense	215,000
Salaries Accrued	-	12500
Insurance Expense	9,000
Annual Depreciation	22,000
Utilities Expense	8,500
Selling Expense	25,000
Total	1,162,000	1,162,000

Income Statement
for the period ending June 30,2020
Particulars	Amt $
Sales Revenue	455,000
Operating Expenses
Salaries Expenses	215,000
Insurance Expense	9,000
Depreciation Expense	22,000
Utilities Expense	8,500
Selling Expense	25,000
Total Operating Expense	279,500
EBIT	175,500
Interest Expense	6,000
EBT	169,500
Income Tax	-
Net Profit	169,500
Dividend	-
Net Profit Transferred to Retained Eaning	169,500
Op . Balance Retained Earning	(50,300)
Net Income trsfd from Income statement	169,500
Cl Balance Retained Earning	119,200

Balance Sheet
As on June 30,2020
Assets	Amt $	Liabilities & Equity	Amt $
Current Assets		Current Liabilities
Cash	32,000	Accounts Payable	26,000
Accounts Receivable	46,500	Accrued Liabilities	50,000
Inventory	78,000	Salaries Accrued	12,500
Prepayments	1,200	Total Current Liabilities	88,500
Other Current Assets	11,000	LT-Borrowing	120,000
Total Current Assets	168,700
LT Asset -Term Deposit	98,500	Total Liabilities	208,500
Fixed Assets		Shareholders' Equity
Land & Building	339,000	Share Capital	450,000
Plant & Equipment	220,000	Retained Earning	119,200
Accumulated Depreciation	(48,500)	Total Shareholders' Equity	569,200
Net Fixed Assets	510,500
Intangible Assets
Goodwill
Total Assets	777,700	Total Liabilities & Equity	777,700