Instructor’s Manual
Financial Accounting and
Reporting
Fifteenth Edition
PR
Barry Elliott
O
Jamie Elliott
FD
O
For further instructor material
please visit:
www.pearsoned.co.uk/elliott-elliott
C
ISBN: 978-0-273-76081-8
© Pearson Education Limited 2012
Lecturers adopting the main text are permitted to download and photocopy the manual as required.
,Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and
Associated Companies around the world
Visit us on the World Wide Web at:
www.pearson.com/uk
----------------------------------
© First published 2011
This edition published 2012
PR
© Pearson Education Limited 2012
The rights of Barry Elliott and Jamie Elliott to be identified as authors of this work have been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Pearson Education is not responsible for the content of third-party internet sites.
O
ISBN: 978-0-273-76081-8
All rights reserved. Permission is hereby given for the material in this publication to be
FD
reproduced for OHP transparencies and student handouts, without express permission of the
Publishers, for educational purposes only. In all other cases, no part of this publication may be
reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise without either the prior written permission of
the Publishers or a licence permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd. Saffron House, 6-10 Kirby Street, London EC1N 8TS. This
O
book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of
binding or cover other than that in which it is published, without the prior consent of the
Publishers.
C
, Contents
Chapters Pages
1. Accounting and reporting on a cash flow basis 4
2. Accounting and reporting on an accrual accounting basis 9
3. Preparation of financial statements 15
4. Annual Report: additional financial statements 40
5. Statements of cash flows 59
6. Income and asset value measurement: an economist’s approach 73
7. Accounting for price-level changes 87
8. Revenue recognition 110
10. Concepts – evolution of a global conceptual framework 128
11. Ethical behaviour and implications for accountants 131
12. Share capital, distributable profits and reduction of capital 136
PR
13. Liabilities 148
14. Financial instruments 157
15. Employee benefits 179
16. Taxation in company accounts 198
17. Property, plant and equipment (PPE) 206
18. Leasing 225
O
19. R&D; goodwill; intangible assets and brands 239
20. Inventories 255
21. Construction contracts 268
22. Accounting for groups at the date of acquisition 283
FD
23. Preparation of consolidated statements of financial position after
the date of acquisition 300
24. Preparation of consolidated statements of comprehensive income,
changes in equity and cash flows 307
25. Accounting for associates and joint ventures 330
26. Accounting for the effects of changes in foreign exchange
O
rates under IAS 21 351
27. Earnings per share 360
28. Review of financial ratio analysis 376
29. Analytical analysis – selective use of ratios 401
C
31. Corporate governance 432
32. Sustainability – environmental and social reporting 441
3
© Pearson Education Limited 2012
, CHAPTER 1
Accounting and reporting on a cash flow basis
Question 1 – Jane Parker
(i) Cash budget (£000)
Jan Feb Mar Apr May June Total
Initial capital 150.00 82.50 232.50
Customers 60.00 75.00 135.00
Total receipts 150.00 82.50 60.00 75.00 367.50
Machinery 30.00 30.00
PR
Motor vehicles 24.00 24.00
Premises 75.00 75.00
Drawings 1.20 1.20 1.20 1.20 1.20 1.20 7.20
Suppliers 30.00 48.00 60.00 60.00 60.00 258.00
O
Rates 1.20 1.20
Wages 2.25 2.25 2.25 2.25 2.25 2.25 13.50
General expenses 0.75 0.75 0.75 0.75 0.75 3.75
FD
Insurance — — — — — 2.10 2.10
Total payments 132.45 35.40 52.20 64.20 64.20 66.30 414.75
Net cash flow 17.55 (35.40) (52.20) 18.30 (4.20) 8.70
Balance b/f — 17.55 (17.85) (70.05) (51.75) (55.95)
Balance c/f 17.55 (17.85) (70.05) (51.75) (55.95) (47.25) (47.25)
O
(ii) Statement of cash flows (£000)
C
Realised operating cash flows for the period ended 30 June 20X1
Receipts from customers 135.00
Payments:
Suppliers 258.00
Rates 1.20
Wages 13.50
General expenses 3.75
Insurance 2.10
278.55
(143.55)
4
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
For information only
Statement of financial position as at 30 June 20X1
£000
Capital – introduced 232.50
– withdrawn (7.20)
Net operating cash flows: Realised (143.55)
Unrealised (7.80)
73.95
Premises (NRV) 75.00
Vehicles (NRV) 19.20
Machinery (NRV) 27.00
Net cash balance (47.25)
PR
73.95
(iii) Further information regarding Jane Parker
• Nature of business linked to Parker’s business background, technical ability, special skills,
O
know-how, existing/terminated business involvement, contacts, associates and related
parties.
• Type of business unit to be used, and rationale for its selection.
FD
• Sources of long- and short-term capital.
• Products’ life cycle and cash flow projections over product life cycle.
• Initial investment in fixed assets and their terminal value at the end of the life cycle.
O
• Parker’s attitude to risk, and how this affects the choice of discount rate and payback period.
C
5
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
Question 2 – Mr Norman
(i) Purchases budget (£000)
p Jan Feb Mar Apr May June
Sales 15.00 20.00 35.00 40.00 40.00 45.00
Gross profit 3.00 4.00 7.00 8.00 8.00 9.00
Purchases 12.00 16.00 28.00 32.00 32.00 36.00
Payments 12.00 16.00 28.00 32.00 32.00
Notes:
• This is a start-up situation.
•
PR
Purchases equal projected sales less a gross margin on sales at 20%.
• Goods are bought in the month of sale; assume stocks remain constant.
(ii) Statement of cash flows (£000)
O
Jan Feb Mar Apr May June Total
Initial capital 50.00 50.00
Cash sales 7.50 10.00 17.50 20.00 20.00 22.50 97.50
FD
Credit sales — 7.50 10.00 17.50 20.00 20.00 75.00
57.50 17.50 27.50 37.50 40.00 42.50 222.50
Premises 80.00 80.00
Rent and rates 2.20 2.20 2.20 2.20 2.20 2.20 13.20
Suppliers 12.00 16.00 28.00 32.00 32.00 120.00
O
Commission 0.30 0.40 0.70 0.80 0.80 3.00
Wages 0.60 0.60 0.60 0.60 0.60 0.60 3.60
Insurance 3.50 — — — — — 3.50
C
86.30 15.10 19.20 31.50 35.60 35.60 223.30
Net cash flow (28.80) 2.40 8.30 6.00 4.40 6.90
Balance b/f — (28.80) (26.40) (18.10) (12.10) (7.70)
Balance c/f (28.80) (26.40) (18.10) (12.10) (7.70) (0.80) (0.80)
6
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
(iii) Statements of operating cash flows and financial position
Realised operating cash flows for the period ended 30 June 20X8
£000
Receipts from customers 172.50
Payments:
Suppliers 120.00
Rates 13.20
Wages 3.60
Commission 3.00
Insurance 3.50
143.30
29.20
Notes:
PR
• The cash flow statement with summary attached is effectively a 6-month cash budget
showing the cash received, cash paid each month and the resulting month-end balances.
• It is necessary to separate sales and purchase transactions into cash and on-credit, and to
identify clearly the month of receipt and payment.
O
• Commission is paid in the month after the sale is made, and all other cash flows are clearly
indicated and allocated to specific months.
FD
• Note that the format of the cash flow statement brings out key figures – for management
decision and control. For example:
• month-end balances – assist in the control of liquidity;
• cash deficiencies – identify how much must be financed;
O
• early warning – allows management to approach appropriate sources;
• cash surpluses – identify amounts to be invested on the best terms.
C
Statement of financial position as at 30 June 20X8
£000
Capital – introduction 50.00
Net operating cash flows : Realised 29.20
: Unrealised (4.00)
75.20
Premises (NRV) 76.00
Net cash balance (0.80)
75.20
7
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
Notes:
• This statement shows net assets of £75,200.
• Make up: premises £76,000 less the negative cash balance £800.
• The negative cash balance indicates the need for overdraft arrangements.
• The statement is based on cash flow concept:
• It ignores accrual-based figures (£36,900 less £25,250).
• Accruals are not regarded as real assets and liabilities.
• Critics of the cash flow concept would maintain that its utility has therefore been
seriously diminished.
(iv) Letter to the bank requesting an overdraft facility
PR
• The maximum overdraft facility of £28,800,
• will be required at the end of January.
• will be eliminated by July.
• Overdraft will fall progressively as per the cash budget.
O
• It might be practical to request a limit of £30,000,
• for the full 6-month period.
FD
• reducing it to £15,000 thereafter to allow for contingencies. The facility is only to be
called on as required.
• Refer to the cash budget to support the request and
O
• confirm that it is based on the most likely scenario.
• agree to a repayment schedule.
C
• Specify that collateral security is available in the form of premises if it should be required.
• If not an existing customer
• give outline details of business background.
• explain future plans.
8
© Pearson Education Limited 2012
, CHAPTER 2
Accounting and reporting on an accrual
accounting basis
Question 1 – Jane Parker
(i) Cash budget (€000)
Jan Feb Mar Apr May June Total
Initial capital 150.00 75.00 225.00
Customers 60.00 75.00 75.00 210.00
Total receipts 150.00 60.00 75.00 150.00 435.00
PR
Machinery 30.00 30.00
Motor vehicles 24.00 24.00
Premises 75.00 75.00
Drawings 1.50 1.50 1.50 1.50 1.50 1.50 9.00
Suppliers 30.00 48.00 60.00 60.00 60.00 258.00
O
Rates
Wages 2.25 2.25 2.25 2.25 2.25 2.25 13.50
General expenses 0.75 0.75 0.75 0.75 0.75 3.75
FD
132.75 34.50 52.50 64.50 64.50 64.50 413.25
Net cash flow 17.25 (34.50) (52.50) (4.50) 10.50 85.50
Balance b/f — 17.25 (17.25) (69.75) (74.25) (63.75)
Balance c/f 17.25 (17.25) (69.75) (74.25) (63.75) (21.75) (21.75)
O
All balances are overdrawn except for January 20X1
Feb Mar Apr May June
C
o/d 17.25 69.75 74.25 63.75 4.65
Note:
No entries will be made for the 20X0/X1 local taxes that are paid in Feb 20X2 – this situation
arose because Jane Parker had assumed that the business would only pay the taxes from the start
of the tax year, e.g. 1.4.20X1.
However, there will be an entry in the profit and loss account and the statement of financial
position.
9
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
(ii) Jane Parker – profit and loss account for 6 months ended 30.6.20X1
€000 €000
Sales [60.00 + (5 × 75.00)] 435.00
Purchases 378.00
Closing inventory (30.00)
Cost of sales 348.00
Gross profit 87.00
Wages 13.50
General expenses 4.50
Local taxes (1.1.X1–30.6.X1) 4.00
Insurance 13.20
Depreciation:
– Vehicles 2.40
– Machinery 1.50 39.10
PR
Net profit 47.90
Budgeted statement of financial position as at 30 June 20X1
Capital 225.00
Net profit 47.90
O
Less: drawings (9.00)
263.90
Non-current assets
FD
Premises 75.00
Vehicles 24.00
Less: depreciation 2.40 21.60
Machinery 30.00
Less: depreciation 1.50 28.50
Current assets
O
Inventory 30.00
Trade receivables (3 × 75.00) 225.00
Insurance 13.20 268.20
C
Current liabilities
Trade payables 120.00
Local taxes (1.1.X1–30.6.X1) 4.00
Bank overdraft 4.65
General expenses 0.75 (129.40)
Net current assets 138.80
263.90
10
© Pearson Education Limited 2012
Financial Accounting and
Reporting
Fifteenth Edition
PR
Barry Elliott
O
Jamie Elliott
FD
O
For further instructor material
please visit:
www.pearsoned.co.uk/elliott-elliott
C
ISBN: 978-0-273-76081-8
© Pearson Education Limited 2012
Lecturers adopting the main text are permitted to download and photocopy the manual as required.
,Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and
Associated Companies around the world
Visit us on the World Wide Web at:
www.pearson.com/uk
----------------------------------
© First published 2011
This edition published 2012
PR
© Pearson Education Limited 2012
The rights of Barry Elliott and Jamie Elliott to be identified as authors of this work have been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Pearson Education is not responsible for the content of third-party internet sites.
O
ISBN: 978-0-273-76081-8
All rights reserved. Permission is hereby given for the material in this publication to be
FD
reproduced for OHP transparencies and student handouts, without express permission of the
Publishers, for educational purposes only. In all other cases, no part of this publication may be
reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise without either the prior written permission of
the Publishers or a licence permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd. Saffron House, 6-10 Kirby Street, London EC1N 8TS. This
O
book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of
binding or cover other than that in which it is published, without the prior consent of the
Publishers.
C
, Contents
Chapters Pages
1. Accounting and reporting on a cash flow basis 4
2. Accounting and reporting on an accrual accounting basis 9
3. Preparation of financial statements 15
4. Annual Report: additional financial statements 40
5. Statements of cash flows 59
6. Income and asset value measurement: an economist’s approach 73
7. Accounting for price-level changes 87
8. Revenue recognition 110
10. Concepts – evolution of a global conceptual framework 128
11. Ethical behaviour and implications for accountants 131
12. Share capital, distributable profits and reduction of capital 136
PR
13. Liabilities 148
14. Financial instruments 157
15. Employee benefits 179
16. Taxation in company accounts 198
17. Property, plant and equipment (PPE) 206
18. Leasing 225
O
19. R&D; goodwill; intangible assets and brands 239
20. Inventories 255
21. Construction contracts 268
22. Accounting for groups at the date of acquisition 283
FD
23. Preparation of consolidated statements of financial position after
the date of acquisition 300
24. Preparation of consolidated statements of comprehensive income,
changes in equity and cash flows 307
25. Accounting for associates and joint ventures 330
26. Accounting for the effects of changes in foreign exchange
O
rates under IAS 21 351
27. Earnings per share 360
28. Review of financial ratio analysis 376
29. Analytical analysis – selective use of ratios 401
C
31. Corporate governance 432
32. Sustainability – environmental and social reporting 441
3
© Pearson Education Limited 2012
, CHAPTER 1
Accounting and reporting on a cash flow basis
Question 1 – Jane Parker
(i) Cash budget (£000)
Jan Feb Mar Apr May June Total
Initial capital 150.00 82.50 232.50
Customers 60.00 75.00 135.00
Total receipts 150.00 82.50 60.00 75.00 367.50
Machinery 30.00 30.00
PR
Motor vehicles 24.00 24.00
Premises 75.00 75.00
Drawings 1.20 1.20 1.20 1.20 1.20 1.20 7.20
Suppliers 30.00 48.00 60.00 60.00 60.00 258.00
O
Rates 1.20 1.20
Wages 2.25 2.25 2.25 2.25 2.25 2.25 13.50
General expenses 0.75 0.75 0.75 0.75 0.75 3.75
FD
Insurance — — — — — 2.10 2.10
Total payments 132.45 35.40 52.20 64.20 64.20 66.30 414.75
Net cash flow 17.55 (35.40) (52.20) 18.30 (4.20) 8.70
Balance b/f — 17.55 (17.85) (70.05) (51.75) (55.95)
Balance c/f 17.55 (17.85) (70.05) (51.75) (55.95) (47.25) (47.25)
O
(ii) Statement of cash flows (£000)
C
Realised operating cash flows for the period ended 30 June 20X1
Receipts from customers 135.00
Payments:
Suppliers 258.00
Rates 1.20
Wages 13.50
General expenses 3.75
Insurance 2.10
278.55
(143.55)
4
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
For information only
Statement of financial position as at 30 June 20X1
£000
Capital – introduced 232.50
– withdrawn (7.20)
Net operating cash flows: Realised (143.55)
Unrealised (7.80)
73.95
Premises (NRV) 75.00
Vehicles (NRV) 19.20
Machinery (NRV) 27.00
Net cash balance (47.25)
PR
73.95
(iii) Further information regarding Jane Parker
• Nature of business linked to Parker’s business background, technical ability, special skills,
O
know-how, existing/terminated business involvement, contacts, associates and related
parties.
• Type of business unit to be used, and rationale for its selection.
FD
• Sources of long- and short-term capital.
• Products’ life cycle and cash flow projections over product life cycle.
• Initial investment in fixed assets and their terminal value at the end of the life cycle.
O
• Parker’s attitude to risk, and how this affects the choice of discount rate and payback period.
C
5
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
Question 2 – Mr Norman
(i) Purchases budget (£000)
p Jan Feb Mar Apr May June
Sales 15.00 20.00 35.00 40.00 40.00 45.00
Gross profit 3.00 4.00 7.00 8.00 8.00 9.00
Purchases 12.00 16.00 28.00 32.00 32.00 36.00
Payments 12.00 16.00 28.00 32.00 32.00
Notes:
• This is a start-up situation.
•
PR
Purchases equal projected sales less a gross margin on sales at 20%.
• Goods are bought in the month of sale; assume stocks remain constant.
(ii) Statement of cash flows (£000)
O
Jan Feb Mar Apr May June Total
Initial capital 50.00 50.00
Cash sales 7.50 10.00 17.50 20.00 20.00 22.50 97.50
FD
Credit sales — 7.50 10.00 17.50 20.00 20.00 75.00
57.50 17.50 27.50 37.50 40.00 42.50 222.50
Premises 80.00 80.00
Rent and rates 2.20 2.20 2.20 2.20 2.20 2.20 13.20
Suppliers 12.00 16.00 28.00 32.00 32.00 120.00
O
Commission 0.30 0.40 0.70 0.80 0.80 3.00
Wages 0.60 0.60 0.60 0.60 0.60 0.60 3.60
Insurance 3.50 — — — — — 3.50
C
86.30 15.10 19.20 31.50 35.60 35.60 223.30
Net cash flow (28.80) 2.40 8.30 6.00 4.40 6.90
Balance b/f — (28.80) (26.40) (18.10) (12.10) (7.70)
Balance c/f (28.80) (26.40) (18.10) (12.10) (7.70) (0.80) (0.80)
6
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
(iii) Statements of operating cash flows and financial position
Realised operating cash flows for the period ended 30 June 20X8
£000
Receipts from customers 172.50
Payments:
Suppliers 120.00
Rates 13.20
Wages 3.60
Commission 3.00
Insurance 3.50
143.30
29.20
Notes:
PR
• The cash flow statement with summary attached is effectively a 6-month cash budget
showing the cash received, cash paid each month and the resulting month-end balances.
• It is necessary to separate sales and purchase transactions into cash and on-credit, and to
identify clearly the month of receipt and payment.
O
• Commission is paid in the month after the sale is made, and all other cash flows are clearly
indicated and allocated to specific months.
FD
• Note that the format of the cash flow statement brings out key figures – for management
decision and control. For example:
• month-end balances – assist in the control of liquidity;
• cash deficiencies – identify how much must be financed;
O
• early warning – allows management to approach appropriate sources;
• cash surpluses – identify amounts to be invested on the best terms.
C
Statement of financial position as at 30 June 20X8
£000
Capital – introduction 50.00
Net operating cash flows : Realised 29.20
: Unrealised (4.00)
75.20
Premises (NRV) 76.00
Net cash balance (0.80)
75.20
7
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
Notes:
• This statement shows net assets of £75,200.
• Make up: premises £76,000 less the negative cash balance £800.
• The negative cash balance indicates the need for overdraft arrangements.
• The statement is based on cash flow concept:
• It ignores accrual-based figures (£36,900 less £25,250).
• Accruals are not regarded as real assets and liabilities.
• Critics of the cash flow concept would maintain that its utility has therefore been
seriously diminished.
(iv) Letter to the bank requesting an overdraft facility
PR
• The maximum overdraft facility of £28,800,
• will be required at the end of January.
• will be eliminated by July.
• Overdraft will fall progressively as per the cash budget.
O
• It might be practical to request a limit of £30,000,
• for the full 6-month period.
FD
• reducing it to £15,000 thereafter to allow for contingencies. The facility is only to be
called on as required.
• Refer to the cash budget to support the request and
O
• confirm that it is based on the most likely scenario.
• agree to a repayment schedule.
C
• Specify that collateral security is available in the form of premises if it should be required.
• If not an existing customer
• give outline details of business background.
• explain future plans.
8
© Pearson Education Limited 2012
, CHAPTER 2
Accounting and reporting on an accrual
accounting basis
Question 1 – Jane Parker
(i) Cash budget (€000)
Jan Feb Mar Apr May June Total
Initial capital 150.00 75.00 225.00
Customers 60.00 75.00 75.00 210.00
Total receipts 150.00 60.00 75.00 150.00 435.00
PR
Machinery 30.00 30.00
Motor vehicles 24.00 24.00
Premises 75.00 75.00
Drawings 1.50 1.50 1.50 1.50 1.50 1.50 9.00
Suppliers 30.00 48.00 60.00 60.00 60.00 258.00
O
Rates
Wages 2.25 2.25 2.25 2.25 2.25 2.25 13.50
General expenses 0.75 0.75 0.75 0.75 0.75 3.75
FD
132.75 34.50 52.50 64.50 64.50 64.50 413.25
Net cash flow 17.25 (34.50) (52.50) (4.50) 10.50 85.50
Balance b/f — 17.25 (17.25) (69.75) (74.25) (63.75)
Balance c/f 17.25 (17.25) (69.75) (74.25) (63.75) (21.75) (21.75)
O
All balances are overdrawn except for January 20X1
Feb Mar Apr May June
C
o/d 17.25 69.75 74.25 63.75 4.65
Note:
No entries will be made for the 20X0/X1 local taxes that are paid in Feb 20X2 – this situation
arose because Jane Parker had assumed that the business would only pay the taxes from the start
of the tax year, e.g. 1.4.20X1.
However, there will be an entry in the profit and loss account and the statement of financial
position.
9
© Pearson Education Limited 2012
, Barry Elliott and Jamie Elliott, Financial Accounting and Reporting, 15th edition, Instructor’s Manual
(ii) Jane Parker – profit and loss account for 6 months ended 30.6.20X1
€000 €000
Sales [60.00 + (5 × 75.00)] 435.00
Purchases 378.00
Closing inventory (30.00)
Cost of sales 348.00
Gross profit 87.00
Wages 13.50
General expenses 4.50
Local taxes (1.1.X1–30.6.X1) 4.00
Insurance 13.20
Depreciation:
– Vehicles 2.40
– Machinery 1.50 39.10
PR
Net profit 47.90
Budgeted statement of financial position as at 30 June 20X1
Capital 225.00
Net profit 47.90
O
Less: drawings (9.00)
263.90
Non-current assets
FD
Premises 75.00
Vehicles 24.00
Less: depreciation 2.40 21.60
Machinery 30.00
Less: depreciation 1.50 28.50
Current assets
O
Inventory 30.00
Trade receivables (3 × 75.00) 225.00
Insurance 13.20 268.20
C
Current liabilities
Trade payables 120.00
Local taxes (1.1.X1–30.6.X1) 4.00
Bank overdraft 4.65
General expenses 0.75 (129.40)
Net current assets 138.80
263.90
10
© Pearson Education Limited 2012
