- Inventories as at 31/12/2020 were €65,000.
- Interest on bank loan is 10% on the year-end balance and is paid in two equal instalments.
- Rent is €500/month. At the beginning of the year there was no rent accrued or prepaid.
- Insurance is €300/month. At the beginning of the year there was no rent accrued or prepaid.
- A bonus to employees of €4,000 regarding their performance in the year ended 31 December 2020 was paid in January 2021. This is the first time that such a bonus was paid.
- Motor vans are depreciated using the Reducing Balance method at 30%. Motor Van B was bought on the 1 July 2020.
- REQUIREMENTS
- Prepare the Income Statement for the year ended 31 December 2020.
- Prepare the Balance Sheet as at 31 December 2020.
- Explain the main difference between Financial Accounting and Management Accounting and list at list 4 main user groups of financial statements.
