The trial balance of Aubrey Locke, a sole proprietor, at 31 May 2014 is as follows:

Dr Cr £ £
Bank 3,840 Cash 120 Forklift truck: cost 20,000 Forklift truck: depreciation to 31 May 2013 4,500 Motor cars: cost 18,000 Motor cars: depreciation to 31 May 2013 6,000 Revenue 375,000 Purchases 195,000 Opening inventory at 1 June 2013 62,000 Rent 20,000 Sales returned by customer 420 Electricity 8,000 Trade receivables 16,200 Trade payables 14,600 Wages and salaries 36,820 Provision for doubtful debts at 1 June 2013 2,640 Bad debts written off 520 General office expenses 18,000 Owner’s drawings 18,500 Capital at 1 June 2013 14,680 417,420 417,420 Notes:
1 Closing stock is £50,000.
2 Electricity of £2,000 is to be accrued at the year-end.
3 Rent of £4,000 has been prepaid at the year-end.
4 Depreciation on the forklift is calculated over 4 years on the straight line method, assuming a residual value of £2,000.
5 Depreciation on the cars is calculated at 40% on the diminishing balance method.
6 The provision for doubtful debts is to be decreased by £400.
Required:

(a) Prepare an income statement for the year ended 31 May 2014 and a statement of financial position as at that date.
Chapter 8 Analysi ng company reports 241

(b) If Aubrey Locke had been operating his business as a limited company, there are likely to be additional items of information you would expect to see when compared with the financial statement of a sole proprietor. List three additional items you would expect to include when preparing a limited company’s statement of financial position.