Solution 11.3 – Robert Casey

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

 

Sales

3,335,000

 

Sales returns

(65,000)

3,270,000

Less cost of goods sold

 

(2,295,000)

Gross Profit

 

975,000

Discount received

27,000

 

Reduction in provision for bad debts

500

 

Rent receivable (36 + 3)

39,000

66,500

Less expenses

 

 

Wages and salaries

178,000

 

Admin expenses (177 + 9)

186,000

 

Rent

90,000

 

Repairs

18,000

 

Discount all

33,000

 

Carriage out

38,000

 

Provision for discount (2% x 256.5)

5,130

 

Provision for depreciation -furniture & fittings

52,500

 

Provision for depreciation -plant & equipment

164,000

(764,630)

Net profit

 

  276,870

 

Balance Sheet as at 31 August 2003

 

Fixed assets

Cost

Acc Dep

NBV

Furniture & Fittings

450,000

(292,500)

157,500

Plant and equipment

   820,000

(464,000)

356,000

 

1,270,000

(756,500)

513,500

Current assets

 

 

 

Stock

 

75,000

 

Debtors

270,000

 

 

Less provision for bad debts

(13,500)

 

 

Less provision for discount

  (  5,130)

251,370

 

Rent receivable

 

    3,000

 

 

 

329,370

 

Current liabilities

 

 

 

Creditors

168,000

 

 

Accruals

9,000

 

 

Bank

    7,000

(184,000)

145,370

 

 

 

658,870

Financed by

 

 

 

Capital

 

 

400,000

Net profit

 

 

276,870

Drawings

 

 

(18,000)

 

 

 

658,870