Professional Documents
Culture Documents
General Knowledge:(1)
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II
(1)
Numerical Questions:Required: Complete I/S and B/S for 01/01/2008-31/12/2008 (This is the second business year). ().
<B/S at 31/12/2007>
Building 290 (Original 300)
Cash 650
Trade Debtors 100
Closing Stocks 120
<Use Internet version for the colour presentation which helps a lot.>
In the next page, everything is dealt with in the left-right hand system for your help.
<Opening Balance>
Building 290 (Original 300)
Cash 650
Trade Debtors 100
Opening Stock 120
20
100
50
100
100
100
200
50
Sales / Turnover
Reversal of Prov.
300
2
Terminologies
Terminologies
Trade
Debtors
or
Trade Debtors or Accounts
Accounts Receivables
Receivables
Trade
Creditors
or
Accounts
Trade Creditors or Accounts Payables
Payables
Stock
Stock or
or Inventory
Inventory
Accruals
Accruals (Generally,
(Generally, these
these refer
refer to
to payables
payables in
in
respect
respect of
of any
any expense
expense item(s);
item(s); however
however in
in
respect
respect of
of income
income item(s)
item(s) such
such as
as interest
interest or
or rent
rent
etc,
etc, they
they are
are termed
termed as
as Receivables
Receivables e.g. Rent
receivable,
receivable, interest
interest receivable
receivable etc.
etc.
Now, you can posit all entries, with some adjustments for presentation, to the publication format of IS
and BS. Ideally, you can fill in the presentation formats without going through all the double-entries
above. But this may take a bit of training. Do your best.
This process from double-entry bookkeeping to Financial Statement is very important, because this will
allow you to understand the impact of one transaction on the IS and BS through which stakeholders
come to know your organizations performance and financial positions. That is why we are doing this
training.
<Having done this, now you need to make the IS and BS in the publication forms>
Income Statement ()
Balance Sheet ()
(Turnover / Sales
Opening stock
(Purchases
Total
(
(
)
(
) Profit
(120
(
(
(
)
)
(Salaries
)
(Depreciation
)
(Provision for bad debts)
(Electricity)
(
) Profit
Interest payable/receivable
Profit (
)
(
)
Profit (
)
Dividends
(
) Profit
This is the publication form.
CoS = OS + Purchases - CS
)
)
)
)
(
(
(
(
(
(
(20
Ignore - zero
(
(
(16
(
(6
)
)
)
)
)
)
)
(Current Liabilities)
(
)
(Other Creditors )
)
)
)
)
)
(Net Assets
(
(
(
(245
(
(100
)
)
(280
)
)
)
)
(898
)
)
(134 )
Net Current Assets
(764 )
Non-Current Liabilities ignore - zero
)
Capital
(Retained Profit )
Shareholders funds
(
(34
(1,044 )
(
(
(
)
)
)
Note 1: It must have been difficult for you to construct the whole IS and BS. But once you have completed this
exercise, you really know how Double-Entry and Financial Reporting work overall.
Note 2: In the exam, you may or may not be asked to construct the whole IS and BS, but it is important to
understand the structure of the IS and BS.
(2)
Using following data, complete the blanks A-F of the Income Statement information for the year ending
31/12/2007 (Unit: 1,000,000).
<Balance Sheet at 31/12/2006>
Building
(Original cost 300)
Cash
Trade Debtors
Closing Stocks
20
100
2
1,000
38
1160
(A)
(B)
(?)
(?)
(?)
80
?
10
20
3
20
0
4
16
(? )
( F )
(3)
The following are the draft final accounts for Quicken ltd. You are required to complete the
Income statement and the Balance Sheet for the year ended 31 st December 2007
Income Statement
Sales
Less Cost of Sales:
Opening Stock
75,000
Purchases
150,525
(
?
)
( ? )
Cost of Sales
Gross Profit
Less:
Expenses
Administration
35,550
Selling & Distribution
41,250
(
?
)
Less:Interest
(
)
Less:Taxation
6,000
(
? )
Dividends
Retained Profit for this year
264,750
145,500
119,250
76,800
42,450
(
)
?
13,500
21,450
Balance Sheet
Land & Buildings
Plant & Machinery
Stock
Cash and Bank
Trade Debtors
120,000
45,000
( ? )
( ? )
14,448
Creditors
Proposed Dividend
Tax Payables *
Long Term Loan
Share capital
Share Premium
Profit and Loss account
288,720
16,800
13,500
( ?
)
45,000
112,500
44,250
50,670
.
( ? )
* The company paid all the Tax bills for the previous year, but none for this year.
(4)
Some data (ie., not all data) from Company XXXs Income Statement (000) and Balance Sheet (000) are
listed below at random for this question:
Cash
Net Profit
Trade receivables
Shareholders' Equity
Gross Profit
Opening inventory
Purchases
Long-term liabilities
PBIT
Problem Set 1, Page 5
1,500
17,000
40,000
165,000
36,000
3,000
19,000
148,000
23,000
Tax
Fixed assets
Share capital
Closing inventory
Short-term liabilities
5,000
250,000
12,000
5,000
65,000
Credit
m
200
350
60
160
120
1,500
580
175
30
750
200
495
2,310
2,310
m
200
(C)
60
200
(D)
Payables (Expenses)
Debenture Interest payable
Provision for tax
? Total
Total
(E)
(F)
79
?
(Cf. If you are comfortable, try making IS as well as BS. But if you are not still strong in doing this, just finish
off the BS only.)
(6)
Accounts receivable
Accounts payable
Sales
Light and heat expenses
Wages
Rent
Office expenses
Capital as on 1 January
Inventory as at 1 January
Purchases
Furniture and fixtures
Cash in hand
Short term loan
Total
Credit 000
623
5,750
570
1,200
800
320
1,350
250
2,160
285
2,188
8,223
500
8,223
From the stock records, the inventory as at 31 December is 380,000. You are required to prepare the
income statement for the year ended 31. Here, the format is not provided for you so that you try to come up
with the form from your memory. Can you do this by now?
(Cf. If you are comfortable, try to make BS as well as IS. But if you are not still strong in doing this, just
finish off the IS only. In the solution, the publication form of BS is shown, but Tomos box form is good
enough, if it is too hard for you.)
III