Jean commenced business on July 19X6. Prepare Jean's trading and profit and loss account for the year to 30 June 19X7, and a balance sheet as at that date. The following additional information is available.
Wages contains a category for sales commission.
Comment on the profitability of the business using two ratios. Using two liquidity ratios calculate and discuss the liquidity position. Show in balance sheet under current liabilities along with creditors.