Solution 11.4 – Sam Wilson

Trading, Profit & Loss Account for year ended 30 April 2004

 

Sales

 

2,320,000

 

Sales returns

 

   (42,000)

2,278,000

Less cost of Goods sold

 

 

 

Opening stock

 

77,000

 

  Purchases

1,580,000

 

 

  Purchases returns

(25,000)

 

 

  Drawings

(4,000)

 

 

  carriage inwards

   24,000

1,575,000

 

Closing stock

 

  (75,000)

(1,577,000)

Gross Profit

 

 

701,000

Add gains

 

 

 

  Discount received

 

15,000

 

  Reduction in provision for bad debts

 

250

 

  Rent receivable (24+3)

 

27,000

42,250

Less expenses

 

 

 

  Wages and salaries

 

125,000

 

  Admin expenses (118 + 9)

 

127,000

 

  Rent  (60-8)

 

52,000

 

  Repairs (12-2)

 

10,000

 

  Discount allowed

 

22,000

 

  Carriage out

 

18,000

 

  Utility costs (15 + 1)

 

16,000

 

  Bad debts

 

10,000

 

  Provision for discount (2% x 166.25)

 

3,330

 

  Provision for depreciation -furniture & fittings

 

93,000

 

  Provision for depreciation -plant and equipment

 

82,000

 

  Provision for depreciation -vehicles

 

  80,000

   638,330

Net profit

 

 

   104,920

 

Balance Sheet as at 30 April 2004

 

Fixed assets

Cost

Acc Dep

NBV

Furniture & Fittings

450,000

(403,000)

47,000

Plant and equipment

820,000

(552,000)

268,000

Vehicles

   320,000

   (280,000)

  40,000

 

1,590,000

(1,235,000)

355,000

Current assets

 

 

 

Stock

 

75,000

 

Debtors

185,000

 

 

Less bad debts

(10,000)

 

 

Less provision for bad debts

(8,750)

 

 

Less provision for discount

(3,330)

162,920

 

Rent receivable

 

3,000

 

Prepayments

 

8,000

 

 

 

248,920

 

Current liabilities

 

 

 

Creditors

112,000

 

 

Accruals (1 + 9)

10,000

 

 

Bank

5,000

(127,000)

121,920

 

 

 

476,920

Financed by

 

 

 

Capital

 

 

390,000

Net profit

 

 

104,920

Drawings (12 + 2 + 4)

 

 

  18,000

 

 

 

476,920