Superprofit Ltd.

1. Closing inventories are £26.

2. The following had not yet been recorded in the trial balance:

(a) Taxation payable £13

(b) Interest on long-term loan £4

(c) Auditors’ fees £2

(d) The authorised share capital is ordinary share capital £250, preference share capital £50.

3. The business started trading on 1 January 2012. Depreciation for the year is £18 for land and buildings and £7 for motor vehicles.

Required:

Prepare for internal management purposes the income statement for year ended 31 December 2012 and the statement of financial position as at 31 December 2012.

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Trial Balance as at 31 December 2012 Ordinary share capital Preference share capital Share premium account Revaluation reserve General reserve Retained earnings as at 1 January 2012 Long-term loan 000 000 210 25 40 35 222 15 28 32 Land and buildings 378 Patents 12 Motor vehicles Opening inventories Trade receivables Trade payables Bank Electricity 47 23 22 18 45 31 12 3 Insurance Wages Ordinary dividends 24 Preference dividends Telephone Light and heat 8 9 3 93500 Revenue 351 Purchases 182 Other expenses 26 769 769