Cherry Hotels Ltd Trial Balance and Financial Analysis

Accounting

Table of Contents
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................5
References......................................................................................................................................12

TASK 1
Cherry Hotels Ltd, Trial Balance at 30 September 2020
IS/SFP CAT Debit Credit
£'000 £'000
IS REV Revenue 13,400
IS EXP Cost of sales 6,000
IS EXP Administration expenses 1,200
IS EXP Rent 2,600
IS REV
Interest on investments
received 20
IS EXP Interest paid 170
IS EXP Tax 380
SFP NCA Fixture and Fittings (Cost) 22,000
SFP NCA Fixtures and Fittings (Acc Dep) 5,000
SFP CA Inventories 160
SFP CA Trade receivables 1,700
SFP CA Cash 60
SFP CL Trade payables 250
SFP CL Bank overdraft 20
SFP NCL Long-term loan 4,000
SFP CAP Share capital 6,800
SFP CAP Retained profits (b/f) 4,780
34,270 34,270
A)
1. Income statement
Income statement
£'000
Revenue 13,400
Less: Cost of sales 6,000
Gross Profit 7,400
Add: Operating Incomes
Interest received 20

Less: Operating expenses
Administration expenses 965
Electricity 235
Depreciation 2,000
Rent 2,600
Less: Prepaid rent 350 2,250
Interest paid 170
Bad debts 200
Provision for Doubtful debts 30
Net Profit before tax 1,570
Less: Income tax 380
Net Profit after tax 1,190
Add: Depreciation 2,000
Net Profit after Depreciation 3,190
2. Statement of financial position
Financial Position
£'000 £'000
Assets
Non Current Assets
Fixture and Fittings 22,000
Less: Accumulated dep. 7,000 15,000
Current Assets
Inventories 160
Trade receivables 1,700
Less: Bad debts 200
Less: Provision for doubtful debts 30 1,470
Cash 60
Prepaid rent 205 1,895
Total Assets 16,895
Owner's equities and liabilities
Equity:
Share Capital 6,800
Add: Retained Profits 4,780
Add: Net Profit after tax 1,045 12,625