Property, at cost 1,700,000

Accumulated depreciation, property 120,000

Equipment, at cost 620,000

Accumulated depreciation, equipment 180,000

Purchases 375,500

Sales 955,250

Inventory, 1 January 2019 57,200

Trade payables 193,400

Trade receivables 234,850

Cash and bank 12,600

Provision for doubtful debts 28,560

Bad debt expense 32,450

Business rates 78,340

Salaries 197,430

Water and electricity 10,310

Insurance expense 12,760

Issued share capital (1 shares) 600,000

Share premium 300,000

Retained earnings 645,730

Interest expense 16,500

Bank Loan 325,000

Total 3,347,940

In addition, the following information is made available:

(i) Inventory at 31 December 2019 is valued at 72,300.

(ii) Depreciation policies are to be applied as follows:

Equipment 25% reducing balance

Premises/property Straight line over the useful life of 50 years

(iii) Business rates include a payment of 58,400 made for the 12-month period

ended on 31 March 2020. In addition, 1,400 of electricity has been consumed

since the last invoice was received.

(iv) Two weeks after the end of the financial year, one of Sheerans customers who

owed 3,200 went into liquidation. The provision for doubtful debts is to be

adjusted to 8% of trade receivables at the end of the year.

(v) A repayment of 50,000 on the bank loan was made on 31 December 2019

(vi) The corporation tax for this year is estimated to be 55,500, payable next year.

None of the above transactions are currently reflected in the trial balance

Required : Prepare a Statement of Profit or Loss for Sheeran Ltd for the year ended 31 December 2019, and a Statement of Financial Position as at that date.