Carol Fox, the owner of a shop selling solar panels, has extracted the year-end Trial Balance from the books of account as stated on the right. She provides the following additional information:

(a) Certain panels, invoiced to customers at £12,000 and accounted for as sold, are still on approval and could be returned any time until 5 April. These panels have been invoiced at cost plus 20%.

(b) Cost of unsold panels, excluding those held by customers on approval basis, is £392,000 as at the year-end.

(c) Panels costing £24,000 taken by Carol for own use have yet to be accounted for.

(d) £74,000 incurred as carriage inwards is included within the amount reported as Transport.

Assume that all expenses have been paid in full and ignore depreciation.

Required: 

Prepare the Statement of income for the year ended 31 March 2011 and the Statement of financial position as at that date.

Transcribed Image Text:

Trial Balance as at 31 March 2011 Receivables and payables Salaries Sales Returns inwards Rent Drawings Purchases Inventory as at 31.3.2010 Advertising Transport Non-current assets Capital Other expenses Cash and bank Bank overdraft £'000 £'000 742 594 - 345 90 45 5,245 418 128 432 2,450 - 292 19 - 498 - 8,480 - - - - - - 1,800 22 10,800 10,800