a) Table 1 Cash receipts and payments of VAL Ltd for the period ended 31.12.

2020

Transactions Amount ''000''

Cash Receipts from:
Cash Sales 943,000
Loan 256,000
Rental Income 24,000
Accounts Receivable 723,000
Issuance of Shares 540,000
Cash Payments for:
Cash Purchases 134,000
Repayment of Loans 156,000
Electricity 27,000
Salaries and Wages 213,000
Repairs 267,000
General Office Expenses 228,000
VAT 111,000
Accounts Payable 259,000
Balances b/d
Accounts Receivable 650,000
Accounts Payable 214,000
Cash 800,000
Inventory 200,000
Balances c/d
Accounts Receivable 750,000
Accounts Payable 820,000
Cash 980,000
Inventory 150,000
1.12.2020
 i) Statement of Profit or Loss for the year ended 31.12.2020

Cash Sales 943,000

Cost of good sold
Cash Purchases 134,000
Opening inventory 200,000
Closing inventory (150,000)
Total cost of good 184,000
Gross profit 759,000
Add other incomes
Rental income 24,000
Accounts Receivables 723,000 747,000
Total income 1,506,000
Expenses
Electricity 27,000
Salaries and Wages 213,000
Repairs 267,000
General Office Expenses 228,000
Accounts Payable 259,000
Repayment of Loans 156,000
Total expenses 1,150,000
profit before tax 356,000
VAT (111,000)
NET PROFIT 245,000
 ii) Statement of financial position as on 31.12.2020

Current Asset
Inventory 150,000
Cash 980,000
Accounts Receivable 750,000
Total Asset 1,880,000
Equity
Issuance of Shares 540,000
NET PROFIT 245,000
Liabilities
Accounts Payable 820,000
Total liability and equity 1,605,000