Book-keeping and Accounts 8th 1

3 Limited company financial statements

Name of Company . . . Limited

Income Statement for the year ended . . .

£ £
Sales xxx
Less Sales returns x
xxx (a)
Less Cost of goods sold
Opening inventory xxx
Add Purchases xxx
Add Carriage inwards xxx
xxx
Less Purchase returns xxx
xxx
Less Closing inventory xx xxx (b)
Gross Profit (a)  (b) xxx (c)
Less Expenses:
Salaries and wages xx
Directors’ remuneration xx
General expenses xx
Rates and insurance xx
Motor expenses xx
Debenture interest xx
Bad debts written off xx
Depreciation – Motors xx
– Equipment xx xxx (d)
Net Profit (c)  (d) xxx (e)
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Book-keeping and Accounts 8th 2

Statement of change in equity for

the year ended …………
Retained profit for the year (e) xxx
Add Retained profit brought forward (f) xxx
(e) + (f) xxx (g)
Less Appropriations:
Transfers to general reserve xx
Interim dividends paid:
Preference shares xx
Ordinary shares xx
Final dividends paid:
Preference shares xx
Ordinary shares xx xxx (h)
Retained profits carried forward (g) - (h) £x,xxx (i)
Book-keeping and Accounts 8th 3

Note: Statement of Financial Position showing less detailed information

Name of Company . . . Limited

Statement of Financial Position
as at . . .
Non-current assets £ £ £
Intangible assets
Goodwill xx (a)
Tangible assets (A)
Premises xxx
Equipment xxx
Motors xxx xxx (b)
(a) + (b) xxx (c)
Current assets
Inventory xx
Accounts receivable xx
Bank xx
Cash xx
xxx (d)
Total assets (c) + (d) xxxx (e)
Current liabilities
Accounts payable xx
Bank overdraft xx
Debenture interest due xx
(f) xxx
Non-current liabilities
Debentures (g) xxx
Total liabilities (f) + (g) xxx (h)
(e) – (h) x,xxx (i)
Equity
Share Capital
Called-up share capital x,xxx (j)
Capital reserve
Share premium xxx (k)
Revenue reserves
General reserve xxx
Retained profits xxx
xxx (l)
(j) + (k) + (l) x,xxx (m)
Notes: Based on UK legislation
(A) Notes to be given in appendix as to cost, acquisitions and sales in the year and depreciation.
Book-keeping and Accounts 8th 4

Note: Statement of Financial Position showing more detailed information

Name of Company . . . Limited

Statement of Financial Position
as at . . .
Cost Depreciati Net Book
on to date Value
Non-current assets £ £ £
Intangible assets
Goodwill xxx - xxx
Tangible assets (A)
Premises xxx xx xxx
Equipment xxx xx xxx
Motors xxx xx xxx
xxx xxx xxx (a)
Current assets
Inventory xx
Accounts receivable xx
Bank xx
Cash xx
xxx (b)
Total assets (a) + (b) xxxx (c)
Less Current liabilities
Accounts payable xx
Bank overdraft xx
Debenture interest due xx
(d) xxx
Less Non-current liabilities
Debentures (e) xxx
Total liabilities (d) + (e) xxx (f)
(c) – (f) x,xxx (g)
Equity
Share Capital
Called-up share capital x,xxx (h)
Capital reserve
Share premium xxx (i)
Revenue reserves
General reserve xxx
Retained profits xxx
xxx (j)
(h) + (i) + (j) x,xxx (k)
Book-keeping and Accounts 8th 5