Superprofit Ltd

1. Closing stock is £26.
2. The following had not yet been recorded in the trial balance:

(a) Dividends payable on ordinary shares £9 and on preference shares £3

(b) Taxation payable £13

(c) Interest on long-term loan £4

(d) Auditors’ fees £2

(e) The authorised share capital is ordinary share capital £250, preference share capital £50.
3. The business started trading on 1 January 2005. Depreciation for the year is £18 for land and buildings and £7 for motor vehicles.
Required: Prepare for internal management purposes the income statement for year ended 31 December 2005 and the balance sheet as at 31 December 2005.

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Trial Balance as at 31 December 2005 Ordinary share capital Preference share capital Share premium account Revaluation reserve 000 000 210 25 40 35 General reserve Profit and loss account as at 1 January 2005 Long-term loan 1225 28 32 Land and buildings 378 Patents Motor vehicles Opening stock 12 47 23 Debtors 18 Creditors 33 Bank 31 Electricity 12 Insurance 3 Wages 24 Telephone S 5