| |
Solution 11.2 – Marc Donald
Trading,
Profit & Loss Account for year ended 31/12/2002
|
Sales |
|
|
397,148 |
|
Less
cost of Goods sold |
|
|
|
|
Opening
stock |
|
15,600 |
|
|
Purchases |
150,456 |
|
|
|
Carriage inwards |
8,900 |
159,356 |
|
|
Closing
stock |
|
(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 |
|
3,500 |
|
|
Provision
for bad debts |
|
1,050 |
|
|
Provision
for depreciation F&F |
|
10,663 |
|
|
Provision
for depreciation P&E |
|
8,031 |
245,797 |
|
Net
profit |
|
|
(13,355) |
Balance
Sheet as at 31/12/2002
|
Fixed
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 |
|
|
|
|
Stock |
|
10,250 |
|
|
Debtors (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 |
|
|
Current
liabilities |
|
|
|
|
Creditors |
20,000 |
|
|
|
Bank |
10,000 |
|
|
|
Loan interest |
3,500 |
|
|
|
Accruals
|
10,250 |
(43,750) |
7,710 |
|
|
|
|
|
|
Long
-term liabilities |
|
|
(50,000) |
|
|
|
|
26,645 |
|
Financed
by |
|
|
|
|
Capital
|
|
|
80,000 |
|
Net profit
|
|
|
(13,355) |
|
Drawings |
|
|
(40,000) |
|
|
|
|
26,645 |
|