From the trial balance and adjustments, prepare the statement of financial position of a sole proprietor.

1. 1 · Heading. Name and 'Statement of financial position as at …'.
2. 2 · Non-current assets. Cost − accumulated depreciation (including this year's charge) = carrying amount.
3. 3 · Current assets.
   • Closing inventory.
   • Receivables − allowance.
   • Prepayments and accrued income.
   • Bank and cash.
4. 4 · Owner's equity. Opening capital + profit − drawings, including goods taken.
5. 5 · Non-current liabilities. Long-term loans.
6. 6 · Current liabilities. Trade payables, accrued expenses, accrued interest.
7. 7 · Balance check. Total assets = equity + liabilities.

Scoring tip: Show the working for each carrying amount inside the statement; it proves where the figure came from.