Adjustments 1) Closing inventories was £30,000,000 on the 31st of December 2020. 2) Corporation tax is 25% for the year, half due now in cash and half due in April 2021. 3) Property was revalued from £55,000,000 to £70,000,000. 4) A court case of a present obligation is being settled (within a year) and therefore regarded as being probable, with Kingsla Motors PLC needing to pay a competitor for copyright infringements at a reliably estimated amount of £25,000,000. 5) Depreciation (all based on reducing balance): a) Fixture and Fittings 15% 6) Amortisation/Impairment: a) £3,000,000 of inventories need to be written off as they've been deemed obsolete (not yet included in stock figure) 7) £2,000,000 of intangibles assets were purchased using cash. 8) Dividends were distributed to shareholders during the financial year to a value of £3,000,000 in cash. 9) A1 for 4 bonus issue was given to shareholders. The bonus issue was conducted before the rights issue. 10) A rights issue of 5 for 2 basis, at £300 per share, with 50% of shares bought by shareholders. REQUIRED Please prepare a balance sheet and income statement for 31st December 2020 using the trial balance presented on the previous page, ensuring that you make all the requested adjustments.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.