Vocational scenario Having successfully completed your six-month probation as a Management Trainee at the consultancy firm, you have now been attached to a unit in the firm that deals with the provision of accountancy and consultancy services to small businesses that are typically set up as sole traders, not for profit and partnerships. The firm is careful about which small and emerging businesses it works with as it seeks to spot growth potential and identify and work with clients that have scalable business models. Assignment activity and guidance You are initially working with a selection of small businesses that have been trading for three years and which now need annual trading statements to be compiled and submitted in line with government requirements. You have been given: A (10 column) trial balance of a business, including receivables, payables, revenue and expenses. See Table 1 for details. Specifically, you will undertake the following: The businesses do not make use of contemporary software to support book-keeping and local accounting function. This is something which concerns you as you feel that it represents an opportunity for the business to save time and resource. Your supervisor, one of the firm's Main Account Managers, has asked you to compile the year-end financial statements ready for submission and provide, for each client, some detailed analysis of the figures produced, which will be presented in the form of an accompanying letter. From the data provided, you are required to prepare the year-end financial statements, taking into consideration accounting principles, conventions and standards. You will need to make and show appropriate adjustments to both the income statement and the balance sheet.