Question 2. AIF Ltd has the following trial balance as at 30th June 2023.
£
£
Sales
135,000
Purchases
82,500
Opening inventory
12,750
Share capital
40,000
Trade receivables
17,500
Rent expenses
4,800
Cash at bank
22,000
Long term loan
8,700
Electricity expenses
750
Insurance expenses
1,150
Motor vehicle-cost
20,000
-accumulated depreciation
4,000
Plant and machinery-cost
22,000
-accumulated depreciation
5,000
Fee income received
1,250
Salaries and wages
25,500
Trade payables
15,000
208,950
208,950
Following additonal Information is available.
• Closing inventory as at 30th June 2023 is £8,500.
• An amount of £450 is due for electricity expenses which is not yet recorded.
• Rent expenses of £200 is due for the year.
• Included in insurance expenses is £250 paid for the year ended 30th September 2023.
• Depreciation of motor vehicle follows straight line basis: 15%.
• Depreciation of plant and machinery is 10% on reducing balance method.
REQUIRED:
Prepare the Income statement and the Statement of financial position for AIF Ltd for the year ended 30th June 2023. Please show all workings.
(50 marks)