Chapter 7 - Financial statement of soletrader


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

  • Income statement for the year ended 31st December 2017
  • Statement of financial position as at 31st December 2017


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

  • Income statement for the year ended 31st December 2018
  • Statement of financial position as at 31st December 2018


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

  • Income statement for the year ended 31st December 2019
  • Statement of financial position as at 31st December 2019