|
Revenue
|
|
|
1,000,000
|
|
Purchases
|
|
280,000
|
|
|
accumulated depreciation vehicles
|
|
|
6,000
|
|
accumulated depreciation P + E
|
|
|
10,000
|
|
Insurance
|
|
3,000
|
|
|
telephones
|
|
2,200
|
|
|
Distribution costs
|
|
4,800
|
|
|
Admin expenses
|
|
20,000
|
|
|
Interest received
|
|
|
5,000
|
|
Debenture interest paid
|
|
175
|
|
|
Vehicles
|
|
46,000
|
|
|
P + E
|
|
30,000
|
|
|
opening inventory
|
|
32,000
|
|
|
trade receivables
|
|
40,000
|
|
|
trade payables
|
|
|
30,000
|
|
bank and cash
|
|
20,000
|
|
|
ordinary shares of $1 each
|
|
|
10,000
|
|
6% redeemable preference shares at $1 each
|
|
|
1,000
|
|
share premium
|
|
|
500
|
|
Retained earnings
|
|
|
20,000
|
|
ordinary dividends paid
|
|
1,000
|
|
|
preference dividends paid
|
|
60
|
|
|
7% debentures
|
|
|
5,000
|
|
premises
|
|
408,265
|
|
|
salaries and wages
|
|
200,000
|
|
|
|
1,087,500
|
1,087,500
|
This is a trial balance for a fictitious company called sheikh cars LTD.
What is required is that you compare figures from this trial balance to figures for a company called AUTOTRADER, and state why the figures are different.
An example would be Auto trader has a large amount of non-tangible assets but this company hasn't, the reason would be that because auto trader is purely online they spend a lot on advertising but this fictitious company doesn't spend money on advertising, because it is not an online website rather it is a showroom that displays there vehicles that are to be sold.
Another thing that should be included is how sheikh cars ltd although they sell cars so cars would be included in their stock and purchases they also have demonstration cars and cars used by managers hence depreciation on vehicles.
Auto trader is a real company so the accounts should be available online.
All figures and comparison MUST be in DETAIL.
About 4 references are needed in the introduction and conclusion, and the references MUST be UK books.
Topic: financial reporting
No# of Pages: 5 pages (1,250 words)
Subject Area: Accounting
Paper Style: Harvard
No# of Sources Required: 5