Part A: Financial statements of business organisations (40 marks):

1. Compare and contrast the financial statements of sole traders' and limited liability companies by: (i) explaining features and examples of account items (maximum 10) that are common to both sole traders' and limited liability companies, (ii) explaining and illustrating differences in how profits are disbursed/distributed, and (iii) explaining how both types of organisations are financed. These should be presented under subheadings. (10 marks)

2. Referring to and using the trial balance in appendix A of this brief prepare an income statement and statement of financial position for the named business. (20 marks, 10 for each statement)

3. Discuss to what extent the financial statements prepared in '2' above will be useful to the business owners and any other stakeholder, for example: supplier, employee, government and management. (10 marks)

APPENDICES: Appendix A: Trial Balance of Godwin Trading Enterprise DR Capital 105,8164 Salaries & Wages 23,172 Sales ~ 136,600 Opening inventory 19,208- Purchases 91,244- Carriage in 1,860 Purchases returns- 1,932 Carriage out Rent & Rates 1,200 2,292 Motor expenses Telephone ~ 2,656 Electricity 2,624 996 General expenses 1,884- Buildings Motor Vehicles at cost- 50,000 20,800 Fixtures & Fittings