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Sample Company Account Question You are provided with the trial balance of Twirl Ltd. as at 31st December 2019: You are provided with the following information: a) The company's inventory at 31st December 2019 is valued at cost of 153,000. b) A dividend of 0.15 per ordinary share was paid to shareholders on 31st October 2019. No further dividends are proposed for the year ended 31 December 2019. c) After the end of the financial year the finance director discovered that a customer owing a balance of 45,000 has gone into liquidation and will be unable to pay. The finance director has subsequently reviewed the trade receivables listing and believes that the allowance for doubtful debts should be set at 8% of the remaining trade receivables (debtors) balance. d) The corporation tax liability for the year to 31st December 2019 is estimated to be 62,000 and should be provided for. e) The company's depreciation policy is as follows: In all cases, a full year's depreciation is charged in the year of acquisition and none in the year of disposal. Depreciation on non-current assets is charged to administration expenses. f) During the year the company disposed of equipment which had cost 80,000 and had a net book value of 38,000 at the date of disposal. The sale proceeds were agreed at 50,000. No entries have been made in the accounts in respect of this transaction. g) The insurance amount in the trial balance represents a payment for insurance for the twelve months ending 30th April 2020. h) One quarter of wages and salaries were paid to distribution staff and the remaining three quarters were paid to administrative staff. Required: 1. Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019. 2. Prepare a Statement of Changes in Equity for the year ended 31 December 2019. 3. Prepare a Statement of Financial Position as at 31 December 2019

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