Question 1 The following is a list of assets and claims of Minor Ltd. at 30 September 20X1 before this year's profit has been included: Bank overdraft Property Inventories of raw materials Trade payables Plant & equipment Loan payable in 20X5 Inventories of finished goods Delivery vans Trade receivables Share capital (1) Retained profits at 1 October 20x0 22,000 245,000 18,000 23,000 127,000 100,000 28,000 54,000 35,000 250,000 76,000 Asset/Claim Required: a) Review the list of balances and decide whether they are an asset or a claim of Minor Ltd. b) Write out a statement of financial position in the standard format incorporating these figures and using the balance sheet equation to deduce the profit or loss for the year. (this will be the figure that makes the balance sheet balance) Question 2 The following is a list of revenue and expenses items of Minor Ltd. for the year ended September 20X1: Salaries of head office staff Rents and rates Telephone and postage Insurance Sales revenues Raw Materials Factory wages Salesmen's motor expenses Advertising Delivery costs 35,000 17,000 4,000 3,000 280,000 68,000 30,000 8,000 5,000 28,000 Expense heading In addition to the above interest charges of 13,000 were paid in the year and the corporation taxation charge was estimated at 20,500. During the year the company paid a dividend of 5p on each 1 ordinary share Required: Write out an income statement in the standard format (with headings of Cost of Sales, Selling and Distribution costs and Administrative costs) incorporating these figures and reconcile the profit or loss for the year with Question 1 above.