Learning outcomes
- Describe and analyse the role of accounting information in a business context.
- Analyse a set of financial statements including balance sheet, profit and loss accounts and cash flow statements.
- Demonstrate the relationship between accounting data and financial planning and resource allocation decisions.
Assignment Task:
Question 1
Weather and Sons Trial Balance as at 30th June 2016
| |
£ |
£ |
adjustments - £ |
Final TB -£
|
| |
DR |
CR |
DR |
CR |
DR |
CR |
|
Retained Profit
|
|
88,000
|
|
|
|
|
|
Sales
|
|
636,000
|
|
|
|
|
|
Share Capital
|
|
100,000
|
|
|
|
|
|
Share Premium
|
|
200,000
|
|
|
|
|
|
Inventory
|
87,000
|
|
|
|
|
|
|
Purchases
|
230,000
|
|
|
|
|
|
|
Trade Payables
|
|
86,000
|
|
|
|
|
|
Trade Receivables
|
205,000
|
|
|
|
|
|
|
Bank
|
83,900
|
|
|
|
|
|
|
Motor expenses
|
12,987
|
|
|
|
|
|
|
Maintenance
|
12,000
|
|
|
|
|
|
|
Salaries & wages
|
106,000
|
|
|
|
|
|
|
Administration Expenses
|
33,220
|
|
|
|
|
|
|
Telephone
|
5,687
|
|
|
|
|
|
|
Heat & Light
|
14,300
|
|
|
|
|
|
|
Equipment at cost
|
318,000
|
|
|
|
|
|
|
Provision for depreciation equipment
|
|
45,000
|
|
|
|
|
|
Motor vehicles at cost
|
45,000
|
|
|
|
|
|
|
Provision for depn motor vehicles
|
|
6,000
|
|
|
|
|
|
Rent
|
68,000
|
|
|
|
|
|
|
Advertising
|
19,118
|
|
|
|
|
|
|
Bad Debts
|
3,788
|
|
|
|
|
|
|
Provision for Bad Debts
|
|
2,000
|
|
|
|
|
|
Long term loan
|
|
90,000
|
|
|
|
|
|
Interest
|
9,000
|
|
|
|
|
|
|
Equipment depreciation
|
|
|
|
|
|
|
|
Motor Vehicle depreciation
|
|
|
|
|
|
|
|
Prepayments
|
|
|
|
|
|
|
|
Accrual
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
Provision for income tax
|
|
|
|
|
|
|
|
Loan interest accrued
|
|
|
|
|
|
|
|
|
1,253,000
|
1,253,000
|
|
|
|
|
You are given the following additional information
a) Closing inventory is £50,000
b) Depreciation has not yet been provided
Equipment 15% reducing balance
Motor vehicles 25% straight line
c) Rent includes a prepayment of £8,000
d) There is an accrual for telephones of £4,300
e) Heat and lighting has been prepaid by £5,000
f) Taxation accrual of £18,300 is to be provided for the year
Required:
a. Adjust the trial balance to take account of the above adjustments.
b. Prepare the Statement of Comprehensive Income (Income Statement)
c. Prepare the statement of Financial Position (Balance Sheet)
Question 2
Choose two of the UK'S main airline companies from the list provided (British Airways, Ryan Air & Easy Jet) and download the companies' annual reports from their website.
Produce the 2013, 2014 and 2015 ratio table for the companies you have chosen from the list above (Profitability, Liquidity and Efficiency ratios as performed in class.) Choose two ratios from each category. Based on these ratios and any other additional information available from the annual reports, compile a report comparing the performance of the companies selected.