Exercise 5

Non-Current Assets Current Assets

Assets which have a useful life of more than a Assets which have a useful life of less than a year.
year. For example,
For example, Closing inventory
Machines Trade receivables
Building Cash at bank
Vehicles Cash in hand
Furniture
Land

Non-Current Liabilities Current Liabilities

Liabilities which are payable after one year. Payable within one year.
For example, For example,
Loan Trade payables
Bank overdraft

Trade receivable are the people from who you have to receive money from.
Trade payables are the people whom you have to pay money to.

Equity
It is whatever that’s in the possession of the owner.
For example, drawings, capital and total profit for the year.

Carriage- Transportation cost

Carriage inwards Carriage outwards

Transportation cost on purchases. Transportation cost on delivery of goods.
Exercise 5

Income statement $ $
Sales 230600
Return In (1300) 229300

Opening inventory 23100

Purchases 137600
Return Out (1100)
Carriage in 2200
Closing inventory (23500) (138300)

Gross profit 91000

Expenses
Carriage out 4600
Wages 18700
Insurance 7600
Vehicles 3100
General 5200 (39200)
51800
Other incomes
Rental incomes 2800

Total profit 54600

Statement of Financial Position $ $

Exercise 5
Non-Current Assets
Premises 90000
Motor Vehicles 30000 120000

Current Assets
Trade receivables 35700
Closing inventory 23500 59200

Total Assets 179200

Non-Current Liabilities -

Current Liabilities
Bank overdraft 1400
Trade payables 29400

Total Liabilities 30800

Equity
Capital 125000
Profit 54600 -
Drawings (31200) 148400