Solution 11.2 – Marc Donald
Income statement for year ended 31 December
|
Sales |
|
|
397,148 |
|
Less cost of Goods sold |
|
|
|
|
Opening inventory |
|
15,600 |
|
|
Purchases |
150,456 |
|
|
|
Carriage inwards |
8,900 |
159,356 |
|
|
Closing inventory |
|
(10,250) |
(164,706) |
|
Gross Profit |
|
|
232,442 |
|
Wages and salaries (102,763 + 10,250) |
|
113,013 |
|
|
Motor expenses |
|
20,000 |
|
|
Rent |
|
40,152 |
|
|
Rates |
|
15,689 |
|
|
Bad debts (1,200 + 1,000) |
|
2,200 |
|
|
Insurance (15,000 - 3,000) |
|
12,000 |
|
|
Sales and marketing |
|
4,520 |
|
|
Office expenses |
|
5,200 |
|
|
Sundry expenses |
|
2,900 |
|
|
Light and heat |
|
6,879 |
|
|
Loan Interest |
|
4,000 |
|
|
Provision for bad debts |
|
1,050 |
|
|
Provision for depreciation F&F |
|
10,663 |
|
|
Provision for depreciation P&E |
|
8,031 |
246,297 |
|
Net profit |
|
|
(13,855) |
Statement of financial position as at 31 December
|
Non-current assets |
Cost |
Acc Dep |
NBV |
|
Furniture & fittings |
85,300 |
53,223 |
32,077 |
|
Plant & equipment |
80,309 |
43,451 |
36,858 |
|
|
165,609 |
96,674 |
68,935 |
|
Current assets |
|
|
|
|
Inventory |
|
10,250 |
|
|
Accounts receivable (40,000 -1,000) |
39,000 |
|
|
|
Less provision bad debts (39,000 x 5%) |
(1,950) |
37,050 |
|
|
Prepayments |
|
3,000 |
|
|
Cash |
|
1,160 |
51,460 |
|
|
|
|
120,395 |
|
Capital and Liabilities |
|
|
|
|
Capital |
|
|
80,000 |
|
Net profit |
|
|
(13,855) |
|
Drawings |
|
|
(40,000) |
|
|
|
|
26,145 |
|
Long -term liabilities |
|
|
50,000 |
|
Current liabilities |
|
|
|
|
Accounts payable |
|
20,000 |
|
|
Bank |
|
10,000 |
|
|
Loan interest due |
|
4,000 |
|
|
Accruals |
|
10,250 |
44,250 |
|
|
|
|
120,395 |