Discuss three differences between the Income Statement and the Balance Sheet (statement of financial position). You must
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Discuss three differences between the Income Statement and the Balance Sheet (statement of financial position). You must use relevant academic literature in your
c) ADB Ltd has the following trial balance as at 31st December 2020 | |
£ | £ |
Sales | 150,000 |
Motor Vehicles | 90,000 |
Accumulated Depreciation for Motor Vehicles | 45,000 |
Opening Stock (as of 1st Jan. 2020) | 15,000 |
Salaries expense | 20,000 |
Accounts Receivables | 75,000 |
Fees received | 45,000 |
Cash | 40,000 |
Purchases | 50,000 |
Notes Payables | 40,000 |
Rent Expenses | 10,000 |
Utilities Expense | 25,000 |
Machines | 60,000 |
Accumulated Depreciation for Machines | 30,000 |
Share Capital | 75,000 |
385,000 | 385,000 |
The following information is also available: - |
(1) Closing stock at the 31st December 2020 is £10,000 |
(2) Included in Utilities expense costs of £12,000 which are paid for the year ended on 30th June 2021. |
(3) Late rent of £10,000 is due and has not been paid or included in the rent expense yet. (4) Depreciation follows straight line method 20% for Motor Vehicles and 10% for Machines. |
Required Showing full workings, you are required to: - |
Prepare an Income Statement and a Balance Sheet for ADB Ltd as at 31st December 2020. |
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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