Solution 11.1 - Gary Dunne

Trading, Profit & Loss Account for year ended 31 January 2003

 

Sales

 

 

330,231

Less cost of Goods sold

 

 

 

Opening stock

 

10,900

 

Purchases

102,763

 

 

Carriage inwards

10,152

123,815

 

Closing stock

 

(12,000)

(111,815)

Gross Profit

 

 

218,416

Wages and salaries (78,456 + 2,300)

80,756

 

Motor expenses

 

12,356

 

Rent  (59,400 -4,000)

 

55,400

 

Rates

 

12,456

 

Bad debts

 

560

 

Insurance

 

15,000

 

Sundry expenses

 

4,520

 

Light and heat

 

12,564

 

Loan Interest (21,300 x 8%)

 

1,704

 

Provision for bad debts

 

1,000

 

Provision for depreciation  Office furniture

7,000

 

Provision for depreciation  Office fittings

4,000

 

Provision for depreciation  Equipment

7,012

(214,328)

Net profit

 

 

     4,088

 

Balance Sheet as at 31 January 2003

 

Fixed assets

Cost

Acc Dep

NBV

Office furniture

56,000

(27,000)

29,000

Office fittings

40,000

(28,000)

12,000

Office equipment

 70,120

(42,622)

27,498

 

166,120

(97,622)

68,498

Current assets

 

 

 

Stock

 

12,000

 

Debtors

50,309

 

 

Less provision for bad debts

 (1,000)

49,309

 

Prepayments

 

4,000

 

Bank

 

18,000

 

 

 

83,309

 

Current liabilities

 

 

 

Creditors

36,000

 

 

Accruals (1704 + 2300)

  4,004

(40,004)

43,305

Long -term liabilities

 

 

(21,300)

 

 

 

 90,503

Financed by

 

 

 

Capital

 

 

98,715

Net profit

 

 

4,088

Drawings

 

 

(12,300)

 

 

 

 90,503