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Chapter 23 An Introduction To The Accounts of Limited Companies Q1 Bracket and Racket Ltd. (A)
Chapter 23 An Introduction To The Accounts of Limited Companies Q1 Bracket and Racket Ltd. (A)
(a)
Trading and Profit and Loss Account
for six months ended 30 September 2002
$000 $000
Turnover (30841 – 53 – 820 + 420) 2631
Cost of sales
Stock at 1 April 2002 1540
Purchases (1996 – 1210 + 510) 1296
2836
Stock at 30 September 2002 704 2132
Gross profit 499
Wages 205
Expenses (823 – 192 + 103) 734
Interest on overdraft 20
Loss on disposal of building (70 – 53) 17
Provision for doubtful debts 21
Depreciation: Buildings 45
Fixtures and fittings 25 1067
Net loss 568
1
Cash takings: Cash expenditure: $(205 000 + 2 784 000 + 45 000 + 45 000) = $3 079 000
Add increase in cash balance 5 000
Total cash received $3 084 000
(a) Profit and Loss Account for the year ended 31 March 2004
$000 $000 $000
Turnover 2 683
Cost of sales
Stock at 1 April 2003 85
Purchases 1 152
1 237
Stock at 31 March 2004 105 1 132
Gross profit 1 551
Selling and distribution 540
Administration 648
Depreciation of motor vehicles 21 669 1 209
Operating profit 342
Debenture interest 36
306
Transfer to General Reserve 10
Proposed dividend on ordinary shares 150 160
Retained profit for the year 146