Financial Accounting Balance Sheet Management

Question: Describe about the Report for Financial Accounting of Balance Sheet Management. Answer: 1. Statement of profit or loss and other comprehensive income P and L a/c of Swish Ltd for 30th June 2016 Particulars Amount Amount Sales revenue 3,245,000 Changes in clothing inventories 25,000 Purchases of clothing inventories 1,020,000 Shipping supplies 12,000 Delivery Charge - Freight Out 21,000 Cost of sales 1,078,000 Revenue from operations 2,167,000 Gain on revaluation of delivery vans 7,000 Assets revaluation surplus 7,000 Rental Revenue 73,000 Interest revenue 9,000 Gross profit 2,263,000 Expenses Advertising expense 38,000 Administrative salaries 168,000 Amortisation expenses- Patent 5,000 Annual leave Expenses sales staff 4,000 Annual leave-Administrative staff 2,000 Depreciation - shop fittings 42,000 Electricity Expenses - administration office 4,000 Depreciation on administration office equipment 8,000 Long service leave expenses- administrative staff 2,000 Promotion Expenses 26,000 Depreciation on vehicles 6,000 Rent Expenses- retail store 189,000 Rent Expenses- administration office 18,000 Electricity Expenses - retail store 17,000 Long service leave expenses- sales staff 10,000 Goodwill impairment loss 20,000 Sundry expenses 4,000 Doubtful debts 63,000 Sales staff salaries 285,000 Income tax expense 450,000 Interest expense 19,000 Tax of revaluation of delivery vehicle 3,000 Annual leave expense 9,000 Long service leave expense 5,000 (1,397,000) Net profit for the year 866,000 2. Statement of financial position Balance Sheet of Swish Ltd for the year ended 30th June 2016 Liabilities Amount Amount Equity and Liabilities Shareholders Funds Share Capital 500,000 Reserves and surplus 9,000 Retained earnings from 2016 866,000 Retained earnings from 2015 272,000 Non Current Liabilities/Long Term Liabilities Bank loans 200,000 Provision for annual leave 37,000 Less Repayable in 1 year 9,000 Less annual leave expense (sales staff and admin staff) 6,000 22,000 Provision for long service leave 18,000 Less Repayable in 1 year (sales staff and admin staff) 5,000 Less long service leave expense 12,000 1,000 Current Liabilities Provisions Accumulated impairment losses - goodwill 20,000 Accumulated depreciation - office equipment 22,000 Less depreciation on office equipment (8,000 ) 14,000 Accumulated depreciation - sales equipment 96,000 Accumulated amortization - patent 10,000 Accumulated depreciation - delivery van 3,000 Accounts payable 63,000 Current tax liability 312,000 Deferred tax liabilities 3,000 Total Liabilities 2,391,000 Assets Non Current Assets/Fixed Assets Amount Amount Shop fittings - at cost 614,000 Less Depreciation shop fittings (42,000) Administration office equipment 46,000 Vehicles delivery van - at fair value 70,000 less depreciation vehicle (6,000) Patent 50,000 Trade mark - at cost 35,000 Goodwill 50,000 Non Current Investments Investment property 954,000 Current Assets Inventories 98,000 Accounts receivable 545,000 less allowance for doubtful debts (83,000) Cash on hand 17,000 Prepaid Rent - retail sore 20,000 Deferred tax asset 23,000 Total Assets 2,391,000 Reference and Bibliography: Adrian, T., Shin, H. 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