Particulars
Sales Revenue
Less: Cost of Sales
Gross Profit
Add: Other Operating Income
Less: Operating Expenses
Profit from Operations or Operating Profit
Less: Finance Cost
Profit before Taxes
Less: Taxation
Profit after Taxes
Note 1: Sales Revenue
Particulars
Sales Revenue
Total
Note 2: Cost of Sales
Particulars
Purchase
Opening Stock
Closing Stock
Total
Note 3: Operating Expenses
Particulars
Director's salary
Telecommunication Charges
Audit Fee
Salesman Comission
Staff Salaries
Insurances
Depreciation on office & building
Depriciation on plant & machinery
Office Rent
Printing & Stationary
Total
Note 4: Finance Costs
Particualrs
Interest Expenses
Total
Notes Amount(£)
1 400,000
2 295,500
104,500
3 -74,250
30,250
4 -500
29,750
-
29,750
1: Sales Revenue
Amount (£)
400,000
400,000
2: Cost of Sales
Amount (£)
305,500
15,000
-25,000
295,500
Note 3: Operating Expenses
Office & Administrative expenses (£) Selling & Distribution expenses (£)
7,000
8,500
1,000
1,000
20,000
2,500
11,250
5,000
5,000
13,000
73,250 1,000
4: Finance Costs
Amount (£)
500
500
Other expenses (£)
chan Notes Amount(£) Amount (£)
Non-Current Assets
Property, Plant and equipment 1 98,750
Intangible Assets -
Investments -
Total non-current Assets 98,750
Current Assets
Inventories 2 25,000
Trade and other receivables 3 22,000
Cash and cash equivalents 4 2,500
Total current assets 49,500
Total Assets 148,250
Equity
Share Capital 5 76,000
Share Premium -
Retained Earnings 6 56,750
Reserves -
Total Equity 132,750
Liability
Non-Current Liability
Loan & Borrowings 7 5,000
Provisions -
Total non-current Liabilities 5,000
Current Liability
Trade and other Payables 8 10,500
Income Tax Liability -
Bank Overdraft -
Total Current Liabilities 10,500
Total Liabilities 15,500
Total Equity and Liabilities 148,250
1/1/2023 Profit Dividend Paid 31/12/2023
Share Capital 76,000 76,000
Share Premium 0
Retained Earnings 27,000 29,750 0 56,750
Reserve 0
Total 103,000 29,750 0 132,750
Note 2: Inventories Note 1: Property, Plant & Equipment
Particulars Amount(£) Particulars Amount(£)
Closing Stock 25,000 Office Building 100,000
Total 25,000 Less: Accumulated Depreciation -25,000
Less: Depreciation -11,250
Plant and Machinery 50,000
Less: Accumulated Depreciation -10,000
Less: Depreciation -5,000
Total 98,750
Note 3: Trade and Other Receivables Note 4: Cash and other Cash Equivale
Particulars Amount(£) Particulars
Debtors 20,000 Bank
Prepaid Insurance 2,000 Total
Total 22,000
ash and other Cash Equivalents Note 5: Share Capital
Amount(£) Particulars Amount(£)
2,500 Ordinary £1 Shares 76,000
2,500 Total 76,000
Note 6: Retained Earnings Note 7: Loans & Borrowings
Particulars Amount(£) Particulars Amount(£)
Profit & Loss Account 27,000 Bank Loan 5,000
Retained Earnings 29,750 Total 5,000
Total 56,750
Note 8: Trade and Other Payables
Particulars Amount(£)
Accounts Payable 10,000
Outstanding telecommunication charge 500
Total 10,500
Particulars Amount(£) Amount(£)
Cash flows from operating activities
Cash generated from operations -11,080
Less: Cash payment of Interest Expenses -
Less: Cash payment of Taxation -
Net cash flow from operating activities (A) -11,080
Cash flows from investing activities
Purchase of non-current assets -
Sales of non-current assets -
Sales of investements 10,000
Net cash flow from investing activities (B) 10,000
Cash flows from financing activities
Loan taken 32,980
Issue of shares -
Net cash flow from financing activities (C) 32,980
Net increase/(Decrease) in cash and cash
equivalents(A+B+C) 31,900
Cash and cash equivalents at the
beginning of the year -30,000
Cash and cash equivalents at the end of
the year 1,900
Note 1: Net cash flow from operations
Particulars Amount(£)
Profit from operations (Note 2) 5,000
Adjustments for:
Add: Depreciation for the year (Note 3) 3,340
Add: Goodwill written off -
Changes in working capital:
Increase in inventories -17,000
Increase in trade receivables -4,450
Increase in creditiors 2,030
Net Cash Flow from Operations -11,080
Note 2: Profit from Operations
Particulars Amount(£)
Increase in retained earnings 5,000
Add: Dividend amount -
Profit for the year 5,000
Add: Tax Expenses -
Add: Interest Expenses -
Profit from Operations 5,000
Note 3: Depriciation of the year
Particulars Amount (£)
Increase in accumulated depreciation of plant & machinery 3,340
Add: Accumulated Depreciation -
Depreciation of the year 3,340
Note 4: Cash and Cash Equivalents
Particulars Amount(£) 2022 Amount (£) 2023
Cash/Bank Balance 5,000 1,900
Bank Overdraft -35,000
Marketable Securities - -
Cash and Cash Equivalents -30,000 1,900
