Principles of Accounting exercise

28.3

T-Account

A. Cook

Dr Business Rates Cr

2015 Item £ 2015 Item £

Jan 1 Business rates b/d 400 Jan 1

Dr Packing Materials Cr

2015 Item £ 2015 Item £

Jan 1 Packing materials b/d 800 Dec 31

Balance Sheet (Self revision)

Trial Balance (Self revision)

28.9

T-Account (Self revision)

Balance Sheet

Income Statement for the year ending 31 August 2015

£ £

Sales
Less: Cost of goods sold 40,900
Inventory 8,200
Purchases 26,000
34,200
Less: Inventory 9,100
25,100
15,800

Less expenses
Rent 4,800
Business rates 1,300
Sundry expenses 340
Depreciation 1,800
8,240
7,560

Statement of Financial Position at 31 August 2015

£ £

Non-current Assets
Motor vehicle 9,000
Less: Provision for motor vehicle 3,000
6,000

Current Assets
Inventory 9,100
Bank 1,500
Account receivable 1,160
Prepayment 300
12,060
18,060

Current Liabilities
Account payable 2,100
Creditor 4,400
Accrual 400
6,900
24960
 Financed by:
Capital 19,700
Less: Drawings 11,700
8,000

*motor vehicle: 0.2 x 9,000 = 1,800

1,800 + 1,200 = 3,000

28.13

Mr. Chai

Statement of Profit and Loss for the year ending 30 April 2014

£ £ £

Sales 259,870
Less: Return inwards 5,624
Net sales 254,246

Less: Cost of goods sold

Opening Inventory 15,654
Add: Purchases 135,680
Less: Return outwards 13,407
Net Purchases 122,273
Add: Carriage inwards 11,830
149,757
Less: Closing inventory 17,750
132,007
Gross profit 122,239

Add: Discount received 1,750

Total income 123,989

Less: Expenses
Salaries and wages 38,521
Rent, rates and insurance (25,973-1,120-543) 19,418
Heating and lighting (11,010+1360) 12,370
Postages and telephones 2,410
Advertising 5,980
Bad debts 2,008
Depreciation 12,074
Allowance for doubtful debt (735-512) 223
Discount allowed 2,306
Carriage outwards 4,562
99,872
Net Profit 24,117
 Mr. Chai

Statement of Financial Position for the year ending 30 April 2014

£ £ £

Non-current assets
Fixtures and fittings 120,740
Less: Provision for depreciation 63,020
57,720

Current assets
Closing inventory 17,750
Prepaid expenses (1,120+5,435) 6,555
Cash 534
Bank 4,440
Account receivable 24,500
Less: Allowance for doubtful debts 735
23,765
53,044
110,764

Less: Current liabilities

Accrued expenses 1,360
Account payable 19,840
21,200
89,564

Financed by:
Capital 83,887
Add: Net profit 24,117
Less: Drawing 18,440
89,564