Required:

a) Prepare an income statement for the year ending 31st December 2021 for Sussex Ltd.

b) Prepare a balance sheet as at 31st December 2021 for Sussex Ltd.

Question B2: The following information has been taken from the books of Sussex Ltd. as at 31st December 2021. Sales 33,000,000 Purchases 7,650,000 Discount Allowed 73,200 Discount Received 88,000 Sales Returns 75,000 Purchase Returns 9,750 Stock as at 1/1/21 320,000 General Administration Expenses 1,025,000 1 Ordinary Share Capital 6,500,000 General Distribution Costs 995,000 Rent Received 550,000 Profit & Loss 3,750,000 Debtors 350,850 Creditors 250,000 10% Debentures 375,000 Debenture Interest paid 37,500 Provision for Doubtful Debt 10,500 Land & Buildings 30,000,000 Delivery Motor Vehicles 800,000 Office Furniture & Equipment 680,000 Salaries 3,000,000 Bank 994,308 Provision for Depreciation Motor vehicles 327,608 Provision for Depreciation Office Furniture & 340,000 Equipment General Reserve 250,000 Share Premium 550,000 46,000,858 46,000,858 355,000 Closing stock as at 31/12/21 Question continues... Accrual & Prepayment Adjustments Salaries - accrual General Distribution Expenses - accrual General Administration Expenses - prepayment 25,000 12,000 15,000 600 Other Adjustments Provision for doubtful debt is to be reduced by The directors have declared an ordinary share dividend of 130,000 The directors have declared a transfer to the General Reserve of 60,000 Land & Buildings has been re-valued at 33,000,000 The company policy is not to depreciate land and buildings Corporation tax on operating activities for the 350,000 year is estimated at Motor Vehicles are to be depreciated at 10% reducing balance Office Furniture & Equipment is to be depreciated at 10% straight line Wages & Salaries are to be divided between distribution, sales and administration expenses in the following ratio: - Distribution expenses 50% - Sales and Marketing expenses 0% - Administration expenses 50% +