Income statement for the year ended 31st December 2019 | |||
$ | $ | ||
Sales / Revenue | **** | ||
Less sales return ( return inwards ) | (**) | ||
Net sales / Net revenue | **** | ||
Less cost of sales: | |||
Opening inventory | **** | ||
Purchases / ordinary goods purchased | **** | ||
Add Carriage on purchases ( Carriage inwards ) | ** | ||
Less Purchases return ( return outwards ) | (**) | *** | |
Goods available for sales | **** | ||
Less Closing inventory | (****) | ||
Cost of sales | (****) | ||
Gross Profit | **** | ||
Add other income: | |||
Discount received | ** | ||
Rent received | ** | ||
Interest received | ** | ||
Commission received | ** | ||
Gross income | **** | ||
Less expenses: | |||
Light and Heat | *** | ||
Advertising | *** | ||
Wages and salaries | *** | ||
Rent and rates | *** | ||
General / administrative / sundry expenses | *** | ||
Discount allowed | *** | ||
Carriage on sales ( Carriage outwards ) | *** | ||
Commission Payable | *** | ||
Interest Payable | *** | ||
Total expenses | (***) | ||
Profit for the year | **** | ||
Statement of financial position as at 31st December 2019 | |||
$ | $ | ||
Non Current assets | |||
Property, plant and equipment | *** | ||
Fixtures and Fittings | *** | ||
Total non current assets | *** | ||
Current Assets | |||
Closing inventory | *** | ||
Trade receivables | *** | ||
Cash and cash equivalents(Cash in hand & bank) | *** | ||
Other receivables | *** | ||
Total current assets | *** | ||
Total Assets | **** | ||
Equity | |||
Capital | *** | ||
Add Profit for the year | *** | ||
Less Drawings | (**) | ||
Capital owned/Owner's capital | *** | ||
Non Current liabilities | |||
Loan | *** | ||
Capital Employed | *** | ||
Current Liabilities | |||
Trade payables | ** | ||
Other payables | ** | ||
Bank overdraft(CR) | ** | ||
Total current liabilities | ** | ||
Equity and Liabilities | **** | ||
Q1. The following trial balance was extracted from the books of Alisha on 31st December 2017 | ||
DR | CR | |
$ | $ | |
Revenue | 88 000 | |
Inventory-1st Jan 2017 | 3 250 | |
Purchases | 36 700 | |
Carriage inwards | 1 150 | |
Carriage outwards | 1 250 | |
Return inwards | 700 | |
Return outwards | 650 | |
Discount allowed | 240 | |
Discount received | 460 | |
Wages and salaries | 3 800 | |
Rent and rates | 1 400 | |
Advertising | 2 200 | |
Interest paid on bank loan | 960 | |
Heat and Light | 430 | |
Machinery | 43 500 | |
Equipment | 32 000 | |
Fixtures and Fittings | 14 100 | |
Trade Receivables | 17 900 | |
Cash and Bank | 12 030 | |
Trade payables | 13 000 | |
10% Loan from Bank (2030) | 11 000 | |
Capital | 66 500 | |
Drawings | 8 000 | |
179 610 | 179 610 | |
Additional information | ||
Inventory at 31st December 2017 amounted to $ 4 800 | ||
Required | ||
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Q2. The following trial balance was extracted from the books of Raheem on 31st December 2018 | ||
DR | CR | |
Sales(Revenue) | 155 370 | |
Purchases | 69 330 | |
Return inwards(sales return) | 1 250 | |
Trade payables | 19 240 | |
Carriage inwards(on purchases) | 250 | |
Drawings | 3 300 | |
Discount allowed | 1 320 | |
Discount received | 220 | |
Capital | 775 00 | |
Wages and salaries | 5 550 | |
Rent and rates | 3 210 | |
Advertising | 1 450 | |
Inventory - 1st Jan | 16 240 | |
Motor Van | 23 420 | |
Property | 110 000 | |
Rent received | 320 | |
Trade receivables | 21 090 | |
Return outwards(purchases return) | 450 | |
Cash and cash equivalents | 12 370 | |
Carriage outwards(on sales) | 320 | |
Bank loan | 16 000 | |
269 100 | 269 100 | |
Additional Information | ||
Closing inventory amounted to $24 550 | ||
Required | ||
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Q3. The following trial balance is extracted from the books of Aliyah on 31st December 2019 | ||
DR | CR | |
Capital | 233 000 | |
Return inwards(sales return) | 1 300 | |
Drawings | 3 000 | |
Bank loan | 20 300 | |
Discount allowed | 410 | |
Purchases | 187 650 | |
Carriage inwards(on purchases) | 1 240 | |
Interest received | 180 | |
Sales | 256 130 | |
Power light and heat | 3 440 | |
Wages and salaries | 11 200 | |
Inventory - 1st Jan | 18 880 | |
Rent and rates | 6 400 | |
Fixtures and fittings | 15 700 | |
Land and buildings | 240 000 | |
Return outwards(purchases return) | 1 290 | |
Cash and cash equivalents | 23 400 | |
Commission received | 380 | |
Trade receivables | 12 340 | |
Carriage outwards(on sales) | 320 | |
Trade payables | 14 000 | |
525 280 | 525 280 | |
Additional Information | ||
Closing inventory amounted to $22 560 | ||
| Required | ||
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