Weston plc produced the following draft statement of financial position (balance sheet) as on 1 May Year 4.

During June, the following transactions and events occurred:
1. The company bought stock costing £66,000 from its suppliers on 2 months’ credit.
2. Goods which cost the company £63,000 were sold for £126,000 to customers on 2 months’
credit.
3. A cheque for £70,000 was sent to suppliers.
4. Cheques to the value of £125,000 were received from customers.
5. Cash paid for wages, £12,000; electricity, £3,000 and rent, £6,000.
6. Depreciation for the month was calculated as £100 on buildings and £10,000 on machinery.

Required

(a) Complete the accounting equation spreadsheet provided.

(b) Prepare a draft income statement (profit and loss account) for the month of June 2000 and a draft statement of financial position (balance sheet) at 30 June Year 4.

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Weston plc: Statement of financial position (balance sheet) as at 31 May Year 4 Non-current (fixed) assets Depreciation NBV Premises Machinery Current assets Inventory (stock) Trade receivables (debtors) Bank/cash Current liabilities Payables (creditors) Net current assets Non-current liabilities Secured loan Capital Retained profit Cost 400,000 350,000 750,000 (40,000) (200.000) (240,000) 14,000 16,000 300 30,300 (17,000) 360,000 150,000 510,000 13,300 523,300 (300,000) 223.300 150,000 73,300 223,300