Smith Soletrader UNAUDITED ACCOUNTS for the year ended 31 December 2014

Transcription

1 UNAUDITED ACCOUNTS for the year ended 31 December 2014

2 Unaudited accounts CONTENTS PAGE Proprietor and Professional Advisers 1 Proprietor s Approval Statement 2 Accountant s Report 3 Profit and Loss Account 4 Balance Sheet 5 Notes to the Accounts 6-13

3 Proprietor and Professional Advisers Proprietor Business name Business address F Smith Smith Soletrader 12 Smith Street Manchester M2 5PT United Kingdom Accountant s name Accountant s address Demo Accountants 15 Brown Street Manchester M3 9RT United Kingdom 1

4 Proprietor s Approval Statement I approve the accounts which comprise the profit and loss account, balance sheet and related notes. I acknowledge my responsibility for the accounts, including the appropriateness of the applicable financial reporting framework as set out in note 1, and for providing Demo Accountants with all the information and explanations necessary for its compilation. F Smith Date: approval_statement_signing_date.to_longdate 2

5 Accountant s Report REPORT TO THE PROPRIETOR ON THE PREPARATION OF THE UNAUDITED ACCOUNTS OF SMITH SOLETRADER FOR THE YEAR ENDED 31 DECEMBER 2014 In accordance with your instructions, I have compiled the accounts on the following pages from the accounting records and from information and explanations supplied to me. I have not carried out an audit or any other review, and consequently I do not, therefore, express any opinion on the accounts. Demo Accountants 15 Brown Street Manchester M3 9RT United Kingdom Date: accountants_report_signing_date.to_longdate 3

6 Profit and Loss Account Note Turnover 2 325, ,000 Cost of sales 2 (77,500) (86,500) Gross profit 247, ,500 Expenditure 2 Premises costs 13,500 12,450 Staff costs 82, ,750 Office costs 1,050 1,250 Advertising Legal and professional 2,700 3,200 Repairs and maintenance Depreciation and amortisation 4,750 3,600 Profit on the disposal of fixed assets - (150) General expenses 3,750 3,750 Finance charges 6,000 1, , ,900 Profit for the year 132, ,600 4

7 Balance Sheet 31 December 2014 Note Fixed assets Intangible assets 3 46,500 47,000 Tangible assets 4 179, , , ,550 Current assets Stocks 5 11,000 10,500 Debtors 6 10,450 8,700 Cash at bank 276, , , ,650 Current liabilities 7 (29,625) (28,800) Net current assets 268, ,850 Long-term liabilities 8 (10,000) (30,000) Net assets 484, ,400 Financed by: Capital account 9 484, ,400 5

8 Notes to the accounts 1 Accounting policies BASIS OF PREPARATION The accounts have been prepared under the historical cost basis and on a basis which enables the profits to be calculated in accordance with United Kingdom Generally Accepted Accounting Practice. TURNOVER The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax. GOODWILL Acquired goodwill is capitalised and measured at cost less accumulated amortisation. Amortisation is calculated on a straight line basis over the useful economic life of the asset. TANGIBLE ASSETS Tangible assets are measured at cost less accumulated depreciation. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Land and buildings Plant and machinery Fixtures and fittings Straight line over 40 years 25% straight line 25% straight line STOCKS Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all costs incurred in the normal course of business in bringing the product or service to its present location and condition. 6

9 Notes to the accounts (continued) 2 Profit and loss account analysis TURNOVER Sales 325, ,000 COST OF SALES Opening stock 10,500 12,000 Purchases 70,000 80,000 Materials 8,000 5,000 88,500 97,000 Less: Closing stock (11,000) (10,500) 77,500 86,500 EXPENDITURE Premises costs Rent 5,000 5,500 Rates 6,000 5,750 Light, heating and power 2,500 1,200 13,500 12,450 7

10 Notes to the accounts (continued) Staff costs Wages and salaries 80, ,000 Employers NI 1,200 6,250 Employers pensions 800 1,000 Other staff costs , ,750 Office costs Printing, postage and stationery Telephone Computer costs ,050 1,250 Advertising Advertising Legal and professional Legal fees 500 1,000 Accountancy fees 2,200 2,200 2,700 3,200 8

11 Notes to the accounts (continued) Repairs and maintenance Repairs and maintenance Depreciation and amortisation Depreciation 4,250 3,100 Amortisation ,750 3,600 Profit/(loss) on disposal of fixed assets Profit/(loss) on disposal of tangible fixed assets - (150) General expenses General insurance 3,750 3,750 Finance charges Bank interest payable 6,000 - Bank charges - 50 Bank loan interest payable - 1,600 6,000 1,650 9

12 Notes to the accounts (continued) 3 Intangible assets Goodwill Cost At 1 January ,000 At 31 December ,000 Amortisation At 1 January ,000 Charge 500 At 31 December ,500 Net book value At 31 December ,500 At 31 December ,000 10

13 Notes to the accounts (continued) 4 Tangible assets Cost Land and buildings Plant and Fixtures and machinery fittings Total At 1 January ,000 32,000 16, ,500 Additions - 1,200 4,000 5,200 Disposals - - (1,200) (1,200) At 31 December ,000 33,200 19, ,500 Depreciation At 1 January ,000 9,600 4,350 19,950 Charge 1,000 1,450 1,800 4,250 Disposals - - (900) (900) At 31 December ,000 11,050 5,250 23,300 Net book value At 31 December ,000 22,150 14, ,200 At 31 December ,000 22,400 12, ,550 5 Stocks Raw materials and consumables 10,000 8,000 Work in progress 1,000 2,500 11,000 10,500 11

14 Notes to the accounts (continued) 6 Debtors Trade debtors 8,500 7,000 Other debtors Prepayments and accrued income 1,350 1,200 10,450 8,700 7 Current liabilities Bank loans and overdrafts 20,000 20,000 Trade creditors 6,000 5,450 VAT liability PAYE and social security Accruals and deferred income 2,500 2,000 29,625 28,800 8 Long-term liabilities Bank loans and overdrafts 10,000 30,000 12

15 Notes to the accounts (continued) 9 Capital account At 1 January , ,800 Net profit for the year 132, ,600 Capital introduced - 50,000 Drawings (12,000) (7,500) Taxation - (1,500) Capital withdrawn - (20,000) At 31 December , ,400 13