13:06 ...l 4G Close Accounting + Math.docx The following information concerns Augax Ltd in relation to its year ended 30 June 2020: Trial balance as at 30 June 2020 bre Inventory as a July 2019 50.418 Wages & salaries Trade payables 70.881 Businesses ort 127.94 JU 21.584 505.00 Purchase Trade receivables 82.400 100.00 090 Sales Fotunes & filings at cos! 0.160 IT equipment to 160 Focus & fittings accumulated depreciation at 1 y 2018 Teguiment accumulated depreciation at 1 y 2019 Dividend paid Cashback son notes 2000-2002 Loan noterest paid 4025 Badoo expense 10918 Sharepomum 33.000 1951 575.700 Mlowance for doubtfuldebts at 1 y 2019 Premises at cost Premises accumulated depreciation at 1 y 2019 Ordinary shares of peach ps medeemable preference shares of each 175.682 139.000 $1,000 Commissions received 4270 Directorsromantion Retailed profits at 1 July 2010 2.271.1942.271.14 In addition to the above trial balance you ascertain the 1. The inventory was counted at 30 June 2020 and was valued at a cost of 54,909 2. Depreciation needs to be charged at the following rates per year: Premises: Fixtures & fittings: IT equipment: (straight-line) 2% (reducing balance) 25% (straight-line) 20% 3. The amount shown for business rates on the trial balance includes a payment of 6,180 which represents twelve months' business rates to 31 August 2020. 4. Utilities charges incurred for which no invoices have yet been received amount to a total of 7,842. 5. The audit fee for the year has been agreed at 18,000 and this needs to be provided for. 6. The allowa be set at 3% of 13:06 ..ll 4G Close Accounting + Math.docx 139.000 Allowance for doubtfuldebts at 1 July 2019 . 375.700 Premises: accumulated depreciation at 1 y 2019 Ordinary shares of 10 each 3% inredeemable preference shares of teach 11.000 Commissions received 18.766 Directors remuneration 94270 Retained prots 1 July 2010 12:271,1942.271,194 In addition to the above trial balance you ascertain the following information: 1. The inventory was counted at 30 June 2020 and was valued at a cost of 54,909 2. Depreciation needs to be charged at the following rates per year: Premises: Fixtures & fittings: IT equipment: (straight-line) 2% (reducing balance) 25% (straight-line) 20% 3. The amount shown for business rates on the trial balance includes a payment of 6,180 which represents twelve months' business rates to 31 August 2020 4. Utilities charges incurred for which no invoices have yet been received amount to a total of 7.842. 5. The audit fee for the year has been agreed at 18,000 and this needs to be provided for 6. The allowance for doubtful debts is to be set at 3% of trade receivables. 7. The interest on the loan notes is paid in two instalments each year, and the second instalment needs to be accrued. 8. The corporation tax charge on this year's profit is estimated to be 27,000. Required: 1. a) Prepare a Statement of Profit or Loss (or "Income Statement) for Augax Ltd for the year ended 30 June 2020 and a Statement of Financial Position (or 'Balance Sheet') as at that date. (38 marks) 2.b) There are many possible different groups of users of financial statements. For example, the suppliers of a company may be interested in using its financial statements to assess that company's ability to pay for its goods. Identify three other potential user groups (in addition to suppliers) and briefly outline why they would be interested in financial statements. (6 marks) 3. c) Explain, using at least two examples, why the increase or decrease) in a company's cash during the year will nearly always be different to the profit (or loss) that it reports for that year. 13:06 ...l 4G Close Accounting + Math.docx The following information concerns Augax Ltd in relation to its year ended 30 June 2020: Trial balance as at 30 June 2020 bre Inventory as a July 2019 50.418 Wages & salaries Trade payables 70.881 Businesses ort 127.94 JU 21.584 505.00 Purchase Trade receivables 82.400 100.00 090 Sales Fotunes & filings at cos! 0.160 IT equipment to 160 Focus & fittings accumulated depreciation at 1 y 2018 Teguiment accumulated depreciation at 1 y 2019 Dividend paid Cashback son notes 2000-2002 Loan noterest paid 4025 Badoo expense 10918 Sharepomum 33.000 1951 575.700 Mlowance for doubtfuldebts at 1 y 2019 Premises at cost Premises accumulated depreciation at 1 y 2019 Ordinary shares of peach ps medeemable preference shares of each 175.682 139.000 $1,000 Commissions received 4270 Directorsromantion Retailed profits at 1 July 2010 2.271.1942.271.14 In addition to the above trial balance you ascertain the 1. The inventory was counted at 30 June 2020 and was valued at a cost of 54,909 2. Depreciation needs to be charged at the following rates per year: Premises: Fixtures & fittings: IT equipment: (straight-line) 2% (reducing balance) 25% (straight-line) 20% 3. The amount shown for business rates on the trial balance includes a payment of 6,180 which represents twelve months' business rates to 31 August 2020. 4. Utilities charges incurred for which no invoices have yet been received amount to a total of 7,842. 5. The audit fee for the year has been agreed at 18,000 and this needs to be provided for. 6. The allowa be set at 3% of 13:06 ..ll 4G Close Accounting + Math.docx 139.000 Allowance for doubtfuldebts at 1 July 2019 . 375.700 Premises: accumulated depreciation at 1 y 2019 Ordinary shares of 10 each 3% inredeemable preference shares of teach 11.000 Commissions received 18.766 Directors remuneration 94270 Retained prots 1 July 2010 12:271,1942.271,194 In addition to the above trial balance you ascertain the following information: 1. The inventory was counted at 30 June 2020 and was valued at a cost of 54,909 2. Depreciation needs to be charged at the following rates per year: Premises: Fixtures & fittings: IT equipment: (straight-line) 2% (reducing balance) 25% (straight-line) 20% 3. The amount shown for business rates on the trial balance includes a payment of 6,180 which represents twelve months' business rates to 31 August 2020 4. Utilities charges incurred for which no invoices have yet been received amount to a total of 7.842. 5. The audit fee for the year has been agreed at 18,000 and this needs to be provided for 6. The allowance for doubtful debts is to be set at 3% of trade receivables. 7. The interest on the loan notes is paid in two instalments each year, and the second instalment needs to be accrued. 8. The corporation tax charge on this year's profit is estimated to be 27,000. Required: 1. a) Prepare a Statement of Profit or Loss (or "Income Statement) for Augax Ltd for the year ended 30 June 2020 and a Statement of Financial Position (or 'Balance Sheet') as at that date. (38 marks) 2.b) There are many possible different groups of users of financial statements. For example, the suppliers of a company may be interested in using its financial statements to assess that company's ability to pay for its goods. Identify three other potential user groups (in addition to suppliers) and briefly outline why they would be interested in financial statements. (6 marks) 3. c) Explain, using at least two examples, why the increase or decrease) in a company's cash during the year will nearly always be different to the profit (or loss) that it reports for that year