| | $ |
Capital | | 200,000 |
Sales | | 568,000 |
Trade Payables | | 72,000 |
Purchases return | | 6,000 |
General expenses | 3,700 | |
Purchases | 296,000 | |
Sales returns | 15,000 | |
Carriage outwards | 10,000 | |
Drawings | 50,000 | |
Rental expense | 65,000 | |
Insurance expense | 22,000 | |
Utilities | 19,000 | |
Stationery | 2,000 | |
Advertising | 43,000 | |
Salaries | 96,000 | |
Cash at Bank | 39,000 | |
Stock at 1st April 2012 | 46,000 | |
Trade Receivables | 75,000 | |
Furniture & fitting at cost | 80,000 | |
Office Equipment | 45,300 | |
Provision for depreciation – furniture and fitting | | 37,600 |
Provision for depreciation – Office Equipment | | 23,400 |
| 907,000 | 907,000 |
Additional information needed for year-end adjustments, is as follows:
Utilities owing as at 31 March 2012 | 1,600 |
Insurance for April 2012 | 3,200 |
Inventory, at 31 March, 2012 | 86,300 |
Irrecoverable Debts to be written off | 1,800 |
Doubtful debts to be provided | 3% |
Depreciation of Furniture based on cost | 20% |
Depreciation of Equipment | 25% on NBV |
Required:
a) Prepare a classified Income Statement for the year ended 31 March, 2012
b) Prepare a Statement of Financial Position as at that date.
Good Luck Trading
Income Statement
For the Year Ended 31 March, 2012
Revenue from sales:
Sales $ 568,000 ^
Less: Sales returns (15,000) ^ $ 553,000
Less: C.O.G.S.
Opening stock $ 46,000 ^
Purchases 296,000 ^
Purchases returns (6,000) ^
Closing stock (86,300) (249,700)
Gross profit $ 303,300 ^
Less: Operating expenses
Carriage outwards 10,000 ^
Advertising expense 43,000 ^
Office salaries expense 96,000 ^
Rental 65,000 ^
Insurance...