You are required to prepare a balance sheet as at 31 December 2010 from the following summary of Pip Ltd’s fi nancial position at 31 December 2010.

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Brands worth 10,000 (directors' opinion) Reputation in the local area 10,000 (directors' opinion) Inventories at cost 50,000 and resale value 85,000, with obsolete inventories 5,000 within the 50,000 Bank overdraft facility 20,000 agreed by the bank manager Cash in the office 1,000 Cash in the bank number one current account 10,000 Overdraft on the bank number two current account 10,000, per the bank statement Land and buildings at cost 100,000 Plant and equipment at cost 150,000 Plant and equipment cumulative depreciation 50,000 Plant and equipment market value 110,000 Accounts payable 81,000 Invoices outstanding by all customers 50,000, including an invoice of 5,000 owed by a customer in liquidation (Pip Ltd has been advised by the receiver that 1p in the 1 will be paid to creditors) Past profits reinvested in the business 110,000 Ordinary shares issued 100,000 (authorised ordinary shares 200,000)