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Illustrative Example: Retailer Ltd: Preparation of financial statements Retailer Ltd, recorded the following transactions during the year: Rm Sales :57,959 Other...

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Accounting

Illustrative Example: Retailer Ltd: Preparation of financialstatements

Retailer Ltd, recorded the following transactions during theyear:

Rm

Sales :57,959

Other non-current assets : 6,304

Cost of sales :55,033

Trade and other receivables: 1,607

Trade and other payables: 8,568

Administration expenses :1,860

Loans (due after one year) :10,711

Loans (due within one year): 2,826

Other current liabilities :7,901

Property, plant and equipment: 17,978

Goodwill :2,874

Finance income :29

Other current assets: 4,246

Cash :3,082

Share capital and premium :5,502

Pension liabilities :3,175

Finance costs :693

Taxation cost: 49

Inventories :2,430

Investments (long term) :1,920

Investments (short term) :3,463

Taxation payable: 419

Other non-current liabilities :1,688

Retained earnings :3,114

Using the information above you are asked to:

2. Prepare a balance sheet at the end of the year and calculatenet assets (assets less liabilities) and equity

Answer & Explanation Solved by verified expert
3.8 Ratings (407 Votes)

Assets Amount
Current Assets
Cash $     3,082
Trade and other receivables $     1,607
Inventory $     2,430
Investment $     3,463
Other Current Assets $     4,246
Total Current Assets $   14,828
Non current assets
Property, plant and equipment $   17,978
Goodwill $     2,874
Investments $     1,920
Other Non current assets $     6,304
Total non current assets $   29,076
Total Assets $   43,904
Current Liabilities
Trade and other payables $     8,568
Loans $     2,826
Taxation Payable $         419
Other current liabilities $     7,901
Total current liabilities $   19,714
Non current liabilities
Pension Liabilities $     3,175
Loan $   10,711
Other non current liabilities $     1,688
Total non current liabilities $   15,574
Equity
Share capital and premium $     5,502
Retained Earnings $     3,114
Total Equity $     8,616
Total Equity and liabilities $   43,904

Net Assets = 43,904 - 35,288 = $ 8,616
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