QUESTION B1 Financial Accounting

SkyTravel Plc is a travel agent. The following is a list, which includes the business assets and liabilities at 31 December 2019 and expenses and income items for the year ended on that date.

SkyTravel Plc
Trial balance as at 31 December 2019
	Dr		Cr
Buildings	12,000
Rent	500
Rates	250
Company vehicles	5,500
Trade receivables	250
Sales			75,000
Purchases	50,000
Trade payables			750
Bad Debt	100
Vehicle depreciations	50
Fixtures and Fittings	2,500
Fixtures and Fittings depreciation	25
Cash in Bank	1,500
Cash in Till	25
Capital			3,700
Retained profit			250
Wages and Salaries	5,500
Vehicle expenditures	250
Long term loan			500
Administration Expenses	500
Marketing Expenses	250
Opening Inventory	1,000
	80,200		80,200
Notes:
Closing Inventory: 2,500

REQUIRED

1. Prepare a statement of financial position of SkyTravel Plc. for the business as at 31 December 19 using the standard layout. You are required to record all the items such as Assets/Liabilities/Equity.

Marks = 15

2. Prepare an income statement of SkyTravel Plc for the year ended 31 December 2019. You are required to record all the items such as Gross Profit/Operating Profit/Net Profit.

Marks = 15

Total Marks = 30 Marks