Solution 14.5

Solution 14.5 – Gaelic Souvenir Retailers Ltd

Trading, P&L and Appropriation Account for year ended 31 March 2005

Sales			242,743
Less cost of sales
Opening stock		4,500
Purchases	78,000
Carriage in	525	78,525
less closing stock		(3,780)
Cost of sales			(79,245)
Gross Profit			163,498
Add Gains and other income
Rental income			24,000
Less Expenses
Wages and salaries		81,938
Motor expenses		8,250
Insurance		9,568
Rates		15,897
Advertising		9,870
Light and heat		4,520
Telephone		4,320
General expenses		9,353
Bad debts		2,560
Provision for depreciation equipment		6,500
Provision for depreciation vehicles		4,000
Provision for bad debts		500	(157,276)
Net profit Before Interest			30,222
- Interest			(13,000 )
Net Profit before tax			17,222
- Corporation tax			(2,300)
Net profit after Tax			14,922
APPROPRIATIONS
Transfer to reserves		3,000
Interim dividend		5,000
Final dividend		5,000	(13,000)
Retained profit for the year			1,922
+ Retained profit b/f			12,000
= Retained profit c/f			13,922

Balance sheet as at 31 March 2005