Question 1 Financial Statements

Carbon is a limited liability company. A trial balance for the year ended 31 December 2020 is presented below.

Ordinary share capital (1 shares)		800,000
Properties - at cost	700,000
Properties - accumulated depreciation		140,000
Furnitures - at cost	500,000
Furnitures - accumulated depreciation		180,000
Trade Payables		45,000
Revenue		900,000
Retained earnings		50,000
Bank	10,000
Trade Receivables	80,000
Cash	2,000
Inventories 01 January 2020	100,000
Distribution and administration expenses	220,000
Share premium		50,000
Purchases	553,000
Total	2,165,000	2,165,000

Additional information:

• A customer bought goods on credit from Carbon for 20,000 on 5 December 2020. On 28 December 2020, the customer returned 5,000 of these goods, and paid by cheque 10,000 for supplies received.

• The directors have declared a dividend of 1 pence per share. The company paid the dividends on 29 December 2020 by cheque

• The current tax charge has been estimated at 500.

• Closing inventory has been correctly valued at 27,000.

• Profit for the year-ended 31 December 2020 is 68,500.

Required:

Draft a statement of financial position for Carbon Ltd as at 31 December 2020.