No Date Debit $ Credit $ Purchases journal

1 31-Dec Customers 126,000 Sales 126,000 SJ

2 31-Dec Sales returns 2,000 Customers 2,000 SRJ Date Accounts
3 31-Dec Purchases 55,200 Suppliers 55,200 PJ W
4 31-Dec Suppliers 2,200 Purchases returns 2,200 PRJ X
5 31-Dec Sales 126,000 Income statement 126,000 Y
6 31-Dec Income statement 2,000 Sales returns 2,000 Z
7 31-Dec Income statement 55,200 Purchases 55,200
8 31-Dec Purchases returns 2,200 Income statement 2,200
9 31-Dec Inventory 5,000 Income statement 5,000
10 31-Dec Suppliers 2,340 Disc received 2,340
11 31-Dec Disc allowed 3,260 Customers 3,260
12 31-Dec Wages 28,000 Bank 28,000
13 31-Dec Rent 16,000 Bank 16,000 Sales journal
14 31-Dec Heating & lighting 3,400 Bank 3,400
15 31-Dec Postage & stationery 1,070 Bank 1,070 Date Accounts
16 31-Dec Motor van expenses 9,830 Bank 9,830 A
17 31-Dec Interest on loan 800 Bank 800 B
18 31-Dec Other operating expenses 920 Bank 920 C
19 31-Dec Disc received 2,340 Income statement 2,340 D
20 31-Dec Income statement 3,260 Disc allowed 3,260 E
21 31-Dec Income statement 28,000 Wages 28,000
22 31-Dec Income statement 16,000 Rent 16,000
23 31-Dec Income statement 3,400 Heating & lighting 3,400
24 31-Dec Income statement 1,070 Postage & stationery 1,070
25 31-Dec Income statement 9,830 Motor van expenses 9,830
26 31-Dec Income statement 800 Interest on loan 800
27 31-Dec Income statement 920 Other operating expenses 920
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Purchases journal Purchases returns journal Cash book
55,200 2,200 3,260
$ Date Accounts $ Date Debit Disc alw Cash Bank Date Credit
value W value A value W
value X value B value X
value C value Y
value D value 31-Dec Wages
E value 31-Dec Rent
31-Dec Heating and lighting
31-Dec Postage and stationery
31-Dec Motor van expenses
31-Dec Interest on loan
31-Dec Other operating expenses
Sales journal Sales returns journal
126,000 2,000
$ Date Accounts $
value A value
value B value
value C value
value
value
 Sales GL
2,340 60,020 126,000 126,000
Disc rcv Cash Bank Date Debit $ Date Credit $
value 31-Dec Income statement 126,000 31-Dec Sales journal 126,000
value 31-Dec Cash book -
value
28,000
16,000
3,400
1,070
9,830
800 Sales returns GL
920 2,000 2,000
Date Debit $ Date Credit $
31-Dec Sales returns journal 2,000 31-Dec Income statement 2,000
31-Dec Cash book -
 Purchases GL Income state
55,200 55,200
Date Debit $ Date Credit $ Date
31-Dec Purchases journal 55,200 31-Dec Income statement 55,200 31-Dec
31-Dec Cash book - 31-Dec
31-Dec
31-Dec
31-Dec
31-Dec
31-Dec
31-Dec
Purchases returns GL 31-Dec
2,200 2,200 31-Dec
Date Debit $ Date Credit $
31-Dec Income statement 2,200 31-Dec Purchases returns journal 2,200 31-Dec
31-Dec Cash book -
Inventor

Date
31-Dec

1-Jan
 Income statement GL Disc received
120,480 135,540
Debit $ Date Credit $ Date Debit
Sales returns 2,000 31-Dec Sales 126,000 31-Dec Income statement
Purchases 55,200 31-Dec Purchases returns 2,200
Disc allowed 3,260 31-Dec Inventory 5,000
Wages 28,000 31-Dec Disc received 2,340
Rent 16,000
Heating & lighting 3,400
Postage & stationery 1,070
Motor van expenses 9,830
Interest on loan 800 Disc allowed
Other operating expenses 920
Date Debit
Bal c/d 15,060 31-Dec Cash book
1-Jan Bal b/d 15,060
Inventory GL
5,000
Debit $ Date Credit $
Income statement 5,000

31-Dec Bal c/d 5,000

Bal b/d 5,000
Disc received GL Wages GL
2,340 2,340 28,000 28,000
$ Date Credit $ Date Debit $ Date Credit $
2,340 31-Dec Cash book 2,340 31-Dec Bank 28,000 31-Dec Income statement 28,000

Disc allowed GL Rent GL

3,260 3,260 16,000 16,000
$ Date Credit $ Date Debit $ Date Credit $
3,260 31-Dec Income statement 3,260 31-Dec Bank 16,000 31-Dec Income statement 16,000
 Heating & lighting GL Motor van expenses
3,400 3,400 9,830
Date Debit $ Date Credit $ Date Debit $ Date Credit
31-Dec Bank 3,400 31-Dec Income statement 3,400 31-Dec Bank 9,830 31-Dec Income statement

Postage & stationery GL Other operating expenses

1,070 1,070 920
Date Debit $ Date Credit $ Date Debit $ Date Credit
31-Dec Bank 1,070 31-Dec Income statement 1,070 31-Dec Bank 920 31-Dec Income statement
 GL Trial balance at 31/Dec/15
9,830 203,960 203,960
$ Accounts Db ($) Cr ($) Income statement
9,830 rev Sales 126,000 rev revenue
rev Sales returns 2,000 cos cost of sales debit
cos Purchases 55,200 inc income
cos Purchases returns 2,200 exp expense debit
inc Disc received 2,340
exp Disc allowed 3,260 Statement of financial position
exp Wages 28,000 nca non current asset debit
exp Rent 16,000 ca current asset debit
GL exp Heating and lighting 3,400 cap capital
920 exp Postage and stationery 1,070 ncl non current liabilities
$ exp Motor van expenses 9,830 cl current liabilities
920 exp Interest on loan 800
exp Other operating expenses 920
nca Premises 40,000
nca Motor vans 18,000
nca Office furniture 5,000
ca Trade receivables 7,400
cl Trade payables 3,420
ca Bank 2,160
ncl Loan Marie (2020) 10,000
cap Capital Andrew 60,000
cap Drawings 10,920
cos Closing inventory 5,000

Trade receivables 7,400

Cash & cash equivalents 2,160

 Andrew
continued
Income statement for year ended 31/Dec/15
Db ($) Cr ($) Db ($) Cr ($)
credit Sales 126,000 Expenses (63,280)
Sales returns (2,000) Disc allowed 3,260
credit Revenue 124,000 Wages 28,000
Rent 16,000
Cost of sales (48,000) Heating and lighting 3,400
Opening inventory Postage and stationery 1,070
Purchases 55,200 Motor van expenses 9,830
Purchases returns (2,200) Interest on loan 800
credit Carriage inwards Other operating expenses 920
credit Closing inventory (5,000)
credit Profit for the year 15,060
Gross profit 76,000
Disc received 2,340

78,340
A1 Liz A2 Rodney
Income statement for year ended 31/Mar/16 Income statement for year ended 30/Sep/15
Db ($) Cr ($) Db ($) Cr ($)
Sales 140,000
Sales 150,000 Sales returns (1,200)
Sales return (4,200) Revenue 138,800
Revenue 145,800
Cost of sales (77,700)
Cost of sales (66,300) Opening inventory
Opening inventory Purchases 84,000
Purchase 68,000 Purchases returns (1,400)
Purchase return (1,700) Carriage inwards
Closing inventory Closing inventory (4,900)

Gross profit 79,500 Gross profit 61,100

 Andrew
363,220 363,220 Income statement for year ended 31/Dec/15
Accounts Db ($) Cr ($) Db ($) Cr ($)
rev Sales 200,000 Sales 200,000
rev Sales return 6,300 Sales returns (6,300)
cos Purchases 86,500 revenue 193,700
cos Purchases returns 5,790
inc Rent received 3,000 Cost of sales (70,710)
inc disc received 3,210 Opening inventory
exp disc allowed 5,110 Purchases 86,500
exp wages 61,050 Purchases returns (5,790)
exp rent paid 12,000 Carriage inwards
exp electricity 5,416 Closing inventory (10,000)
exp insurance 2,290
exp motor van expense 11,400 Gross profit 122,990
exp Other operating expenses 3,760 Disc received 3,210
ncl loan interest 1,000 Rent received 3,000
nca land and buildings 84,000 129,200
nca Plant and machinery 22,000
nca motor van 19,000
ca trade receivables 12,425
cl trade payables 4,220
ca bank 5,065
ncl Loan (repayable in 2022) 20,000
cap Drawings 25,904
cap Capital 127,000
 continued

Db ($) Cr ($)
Expenses (102,026)
disc allowed 5,110
wages 61,050
rent paid 12,000
electricity 5,416
insurance 2,290
motor van expense 11,400
Other operating expenses 3,760
loan interest 1,000

Profit for the year 27,174

7.3 Date Debit $ Credit $ Note
1 31-Dec-15 Inventory 5,000 Income statement 5,000 closing inventory 31 Dec 15
2 31-Dec-15 Bal c/d 5,000 Inventory 5,000
3 1-Jan-16 Inventory 5,000 Bal b/d 5,000 closing inventory 31 Dec 15
4 becomes opening inventory 01 Jan 16
5 31-Dec-16 Income statement 5,000 Inventory 5,000 opening inventory 01 Jan 16
6 transferred to income statement
7 31-Dec-16 Inventory 8,000 Income statement 8,000 closing inventory 31 Dec 16
8 becomes opening inventory 01 Jan 17
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
 Inventory GL Andrew
18,000 10,000 Income statement for year ended
Date Debit $ Date Credit $ Db ($)
31-Dec-15 Income statement 5,000 31-Dec-15 Bal c/d 5,000 Sales
1-Jan-16 Bal b/d 5,000 31-Dec-16 Income statement 5,000 Sales returns
31-Dec-16 Income statement 8,000 Revenue

Cost of sales
Opening inventory 5,000
31-Dec-16 Bal c/d 8,000 Purchases 62,000
1-Jan-17 Bal b/d 8,000 Purchases returns
Carriage inwards
Closing inventory (8,000)

Gross profit
rew A4 Khor
31/Dec/16 Income statement for year ended 31/Dec/15
Cr ($) Db ($) Cr ($)
Sales 48,000
Sales returns (1,600)
150,000 Revenue 46,400

(59,000) Cost of sales (16,600)

Opening inventory 4,000
Purchases 21,000
Purchases returns (900)
Carriage inwards
Closing inventory (7,500)

91,000 Gross profit 29,800

91,000
 Lamar
181,000 181,000 Income statement for year ended 31/4/16
Accounts Db ($) Cr ($) Db ($) Cr ($)
nca Premises 60,000 Sales 104,000
nca Plant machinery 12,000 Sales returns (3,700)
rev Sales 104,000 Revenue 100,300
rev Sales returns 3,700
cos Purchases 59,000 Cost of sales (52,450)
cos Purchases returns 2,550 Opening inventory 6,000
cos Opening Inventory 6,000 Purchases 59,000
exp Wages 13,000 Purchases returns (2,550)
exp Rent payable 2,000 Carriage inwards
inc Rent receivable 1,800 Closing inventory (10,000)
exp Heating and lighting 2,700
exp Repairs to machinery 4,100 Gross profit 47,850
exp Interest on loan 750 Disc received 770
exp Discount allowed 1,030 rent receivable 1,800
inc Discount received 770 total gross profit 50,420
ca Trade receivables 1,624
cl Trade payables 1,880
ca Bank 5,000
cap Drawings 10,096
ncl Long-term loan 15,000
cap Capital 55,000
 continued

Db ($) Cr ($)
Expenses (23,580)
Wages 13,000
Rent payable 2,000
Heating and lighting 2,700
Interest on loan 750
Repairs to machinery 4,100
Discount allowed 1,030

Profit for the year 26,840

7.4 A.Trader A6
continued
Income statement for year ended 31/Dec/15
Db ($) Cr ($) Db ($) Cr ($)
Sales 93,000 Expenses (21,580)
Sales returns (2,700) Wages 12,000
Revenue 90,300 Rent 5,600
Carriage outwards 2,220
Cost of sales (41,800) Other operating expenses 1,760
Opening inventory 3,000
Purchases 45,200 Profit for the year 26,920
Purchases returns (3,400)
Carriage inwards 4,000
Closing inventory (7,000)

Gross profit 48,500

48,500
 Sara
Income statement for year ended 31/Mar/16
Accounts Db ($) Cr ($) Db ($) Cr ($)
Sales 40,000 Sales 40,000
Opening inventory 5,000 Sales returns
Purchases 20,500 Revenue 40,000

Cost of sales (23,820)

Opening inventory 5,000
Purchases 20,500
Purchases returns
Carriage inwards 1,320
Closing inventory (3,000)

Gross profit 16,180

 7.5
continued
Income statement for year ended 30/Apr/16
Db ($) Cr ($) Db ($) Cr ($) Note
Expenses (20,930) Sales
Wages 6,000 Sales returns
Rent 10,000 Revenue 80,000
Electricity 2,600
Carriage outwards 1,080 Cost of sales (38,000)
Other operating expenses 1,250 Opening inventory 5,000
Purchases 35,000
Loss for the year (4,750) Purchases returns
Carriage inwards
Closing inventory (6,000)
Wages 4,000 16k x 25%

Gross profit 42,000

42,000
P1 Hadlee
101,920 101,920 Income statement for year ended 31/Dec/15
Accounts Db ($) Cr ($) Db ($) Cr ($)
nca Plant and machinery 25,000 Sales 72,800
nca office furniture 6,000 Sales returns (1,600)
cos Opening inventory 11,000 Revenue 71,200
ca Trade receivables 4,740
cl Trade payables 1,976 Cost of sales (28,396)
ca Bank 3,327 Opening inventory 11,000
ncl Loan 5,000 Purchases 28,540
rev sales 72,800 Purchases returns (2,144)
cos purchases 28,540 Carriage inwards
rev sales returns 1,600 Closing inventory (9,000)
cos purchases returns 2,144
exp wages 3,100 Gross profit 42,804
exp rent 4,000
exp heating and lighting 5,120
exp advertising 2,400
exp other operating expenses 2,010
exp Loan interest 250
cap Drawings 4,833
cap Capital 20,000
 P2
continued
243,730 243,730
Db ($) Cr ($) Accounts Db ($) Cr ($)
Expenses (16,880) rev Sales 204,000
wages 3,100 rev Sales returns 3,600
rent 4,000 cos Purchases 118,000
heating and lighting 5,120 cos Purchases returns 4,440
advertising 2,400 cos Inventory at 1 April 2015 18,000
other operating expenses 2,010 cos Carriage inwards 5,000
Loan interest 250 exp Carriage outwards 3,724
inc Discount received 3,160
Profit for the year 25,924 exp Discount allowed 5,020
exp Wages 36,800
exp Rent 8,000
exp Heating and lighting 6,450
exp Other operating expenses 1,143
nca Fixtures and fittings 9,000
nca Office furniture 2,000
ca Trade receivables 1,970
cl trade payables 2,130
ca bank 2,496
cap drawings 22,527
cap capital 30,000
 Tikolo
Income statement for year ended 31/Mar/16
Note Db ($) Cr ($)
Sales 204,000
Sales returns (3,600)
120.000 - 2.000 = 118000 Revenue 200,400

Cost of sales (116,560)

Opening inventory 18,000
Purchases 118,000
Purchases returns (4,440)
Carriage inwards 5,000
Closing inventory (20,000)

Gross profit 83,840

Discount received 3,160
Total gross profit 87,000

20.527 + 2.000 = 22.527

 continued

Db ($) Cr ($)
Expenses (61,137)
Carriage outwards 3,724
Discount allowed 5,020
Wages 36,800
Rent 8,000
Heating and lighting 6,450
Other operating expenses 1,143

Profit for the year 25,863