published account workings

debtors

debtors + inv inco - provision bad debt

patent

tb - written off

admin exp

TB + aud fees director fees + depr buildings + unfair dismissal or legal

distribution cost

TB + royalties depreciation buildings + depreciation vans

exceptional item

sale on land

other creditors

debenture into due auditor fees director fees unfair dissmisal legal fee

Turnovver

sales - return inwards

cost of sales

stock purchases carriage inwards - close stock + patent written off

other operating income

rental income discount received comisson earned etc

notes tangible fixed assets

buildings were revalued end of year to * and have been included in the accounts at their relevant amount. depreciation is calculated to write of value TFA over their estimated useful economic life as buildings x percent vans x percent. stocks valued fifo basis lower of cost net realisable value

operating profit

include depreciation fixed asset patient amortisised director fees auditor fees unfair dismissals claim legal fees

contingent liability

company has provided * for a claim made employee for unfair dismissal. the companys legal advisers have advised that the company will probably be liable for the full 60,000 of the claim

interest payable

on debentures of x repayable by **** is 16800

dividends note

compare ordinary dividend and preference dividend

what is an audit

examination of financial statements of an enterprise by an auditor appointed by the ordinary shareholders who are independent business. will check if proper books maintained if accounting concepts applied correctly if all legal requirements have been met and do financial statements reflect fair view of business

why is it important financial statements properly regulated

ensure consistent year to year can be easily compared between business ensure comply with national law ensure required info available external infos

items information mustt be included directors reports

amount transferred reserves significant changes fixed assets. report in changes in nature companys business during year. any likely future developments. last years results

purpose auditors report

provide independent verification relibiality of financial statements presented to shareholders and others relying account