Statement of Financial Position

Statement of Financial Position Sydney Company Limited provided the following Trial Balance in regard to its operation for the year ended 30 June 2016

	2015		2016
	Debit	Credit	Debit	Credit
	$	$	$	$
Cash at bank	64,308		197,332
Call on deposit	60,000		60,000
Petty cash	5,000		5,000
Advertising prepaid	1,960		2,130
Account receivable	69,835		61,303
Inventory	41,907		52,867
Land and building	190,000		190,000
Motor Vehicle	61,000		86,000
Accumulated depreciation- Building		8,500		15,700
Accumulated depreciation		12,400		25,900
Goodwill on acquisition	80,000		80,000
Accumulated impairment loss- Goodwill		-		8,000
Account payable		47,879		45,361
Provision long service leave		18,000		23,000
Taxation payable		27,080		61,416
Wages accrued		1,036		1,248
Rental income in Advance		600		800
Dividend payable		15,000		12,000
Mortgage		30,000		20,000
Share capital		350,000		360,000
Retained earnings		26,168		36,515
Sales		750,000		847,124
Cost of goods sold	475,000		477,502
Rental income received		12,000		17,000
Wages	125,000		127,308
Superannuation	4,753		5,092
Long service leave	4,000		5,000
Advertising	8,500		9,600
General expenses	24,000		22,305
Impairment of Goodwill	8,000		8,000
Depreciation- Building	6,200		7,200
Depreciation- Motor Vehicle	12,500		13,500
Interest expenses	1,500		1,700
Bad debt	200		809
Income tax	55,000		61,416
Total	1,298,663	1,298,663	1,474,064	1,474,064

Additional information for the June end 2016

1. All sales and purchase are in credit.
2. All the expenses except depreciation, impairment and bad debts is cash expenses.
3. Company is maintaining tax as per tax payable method.
4. Dividend payable of 2015 is paid.
5. Company paid interim dividend $15,000.
6. The company has book value of land and building $190,000 and revaluation was done by company where valuator revalue same assets worth $185,000.
7. 10% of retained earning transferred to General Reserve.
8. Company issued share capital $10,000 at June end 2016.
9. Company transferred its assets revaluation loss to retained earnings.

Statement of Financial Position

1. Comprehensive Income Statement
2. Statement of Change in Equity
3. Statement of Financial Position
4. Cash Flow Statement 

The Sydney Company Limited
Comprehensive Income Statement
For the year ended 30 June 2016 

Particulars	Note	$
Sales Revenue		847,124
Cost of Sales		(477,502)
Gross Profit		369,662
Other Income	1	17,000
Employees benefit	2	(137,400)
Administrative expenses	3	(32,714)
Depreciation	4	(20,700)
Impairment of goodwill		(8000)
Finance cost	5	(1,700)
Profit before income tax		186,108
Income tax expenses		(61,416)
Operating profit after tax		124,692
Gain/(losses) recognized		(5,000)
Total change in equity during the period	6	119,692

 Note 1: Rental
Note 2: Consist of Wages, Superannuation and Long Service Leave $127,308, $5,092 and $5,000 respectively.
Note 3: Consist of Advertising, general expenses and bad debts $9,600, $22,305 and $809 respectively.
Note 4: Building and Motor vehicle $7,200 and $13,500 respectively.
Note 5: Interest expenses
Note 6: Revaluation of building decreased. 
The Sydney Company Limited
Statement of Change in Equity
For the year 30 June 2016 

	Retaining Earnings	Capital	Assets Revaluation Reserve	General Reserve	Total
Opening Balance	63,515	350,000	0	0	413,515
Add: Profit for the period	124,692				124,692
Gain/(Loss0 recognized directly in equity(a)			(5000)		(5,000)
Dividend Paid/Declared	(27,000)				(27,000)
Transferred to General Reserve	(1,247)			1,247	-
Issue of Share capital (b)		10,000			10,000
ARR transferred to R/E	(5,000)		5,000		-
Closing Balance	154,960	360,000	-	1,247	516,207

 You have to adjust the value of revaluation of Land and Building in your final Statement of Financial Position. At this time, the value is $190,000 but when you prepare the final balance sheet, then you have to decreased this value to $185,000. But before to adjust, you have to also check the opening and closing value of Land and Building. Sometime, your accountant can give you the adjusted Land and Building value where opening and closing value may not be same.

• Additional share issue also has same impact. You have to increase the share capital by $10,000 in your final statement of financial position. For this you have to also check the opening and closing balance. If the closing value is more than opening value by $10,000 then you don’t need to adjust.

The Sydney Company Limited
Statement of Financial Position 

	Note	2016
Assets
Current Assets
Cash and Cash Equivalent	1	262,332
Trade and Other Receivable		61,303
Inventories		52,867
Other Current Assets	2	2,130
Total Current Assets		378,632
Non-current Assets
Land and Building	3	185,000
Less: Accumulated Depreciation		(15,700)
Motor Vehicle		86,000
Less: Accumulated Depreciation		(25,900)
Goodwill		80,000
Less: Accumulated impairment		(8,000)
Total Non-current Assets		301,400
Total Assets		680,032
Liabilities
Current Liabilities
Trade Payable		45,361
Other Payable	4	25,048
Taxation payable		61,416
Dividend payable		12,000
Total Current Liabilities		143,825
Non-Current Liabilities
Mortgage		20,000
Total Non-Current Liabilities		20,000
Total Liabilities		163,825
Net Assets		516,207
Equity	5
Share Capital		360,000
Retained Earnings		154,960
General Reserve		1,247
Total Equity		516,207

Note 1: Cash, call deposit and petty cash are included.
Note 2: All prepaid expenses are included.
Note 3. The revaluation value is reported.
Note 4: Provision for long service leave, wages accrued and rental income in advance are included.
Note 5: From Statement of changes in equity 
The Sydney Company Limited
Cash Flow Statement
For the year ended 30 June 2016

	$	$
Cash flow from operating activities
Cash receipt from customer	854,847
Rental income	17,200
Cash paid to creditors	(490,980)
Wages	(127,096)
Superannuation	(5,092)
General expenses	(22,305)
Advertising	(9,770)
Tax expenses	(27,080)
Interest expenses	(1,700)
Net cash from Operating Activities		188,024
Purchase of Motor Vehicle	(25,000)
Net cash used in Investment Activities		(25,000)
Cash flow from Financing Activities
Proceed from Issue of Share Capital	10,000
Payment of Mortgage	(10,000)
Dividend payment	(30,000)
Net cash used in Financing Activities		(30,000)
Net increase/(decrease) in cash and cash equivalents		133,024
Cash and cash equivalents at beginning of period		64,308
Cash and cash equivalents at end of period		197,332

Cash and cash equivalents at end of period should be equal with the balance of statement of financial position. You can check with your question.