Tax Covenants and Warranties

3.2 The balance sheet shows the following:

Jane’s Windsurfing Limited Balance Sheet

Computers, equipment, racking, van

25,700 ______

Trading stocks

46,200 29,100 25,600

Debtors

Cash and bank Trade creditors

(31,800) (1,900) (6,900) (10,600) ______ 49,700 ______

PAYE and NIC payable

VAT payable

Corporation tax payable

Net current assets

Provision for liabilities - deferred tax

(3,300)

Net assets

72,100

Share capital

20,000

11

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