Profit and Loss Account for the Year Ended

The assignment content presents the financial statements of a company for the year ended December 31, 2015. The Profit and Loss Account shows sales revenue of £3,873, with gross profit of £908, and net profit after taxation of £167. The Balance Sheet as at December 31, 2015, reveals total assets of £1,145, including fixed assets of £155 and current assets of £682. Total liabilities are £507, comprising current liabilities of £175 and a bank loan of £60.

Accounting:
Part A:
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2015
£’000 £’000
SALES 3,873
OPENING STOCK 176
PURCHASES 2,775
2,951
CLOSING STOCK 14
2,965 2,965
GROSS PROFIT 908
Advertising 35
Electricity 38
Rates 28
Fixtures 100
Vehicles 30
Wages & salaries 143
Rent 88
Interest (Bank) 5
Director’s Salaries 115
Insurance 25
Expenses 69
676 676
PROFIT 232
Taxation 65
Profits after Taxation 167
Dividends 25

BALANCE SHEET AS AT 31ST DECEMBER 2015
COST ACC’ DEPRECIATION NET BOOK
VALUE
£’000 £’000 £’000
FIXED ASSETS
Vehicles 150 105 45
Fixtures and Fittings 400 300 100
145
CURRENT ASSETS
Bank 248
Debtors 415
Stock 14
Pre-payments 5
682
CURRENT LIABILITIES
Creditors 75
Tax 65
Provisions 10
Dividends 25 175
507 507
NET CURRENT ASSETS 652
SHARE CAPITAL ISSUED 250
PROFIT FOR 2015 342
BANK LOAN 60
652

Part B: