Solution 6.5 – Mike McDonald

Trading and Profit and Loss Account for year ended 31 December 2005

 

 

Sales

     

452,728

Less cost of sales

       

Opening stock

 

15,600

   

Purchases

150,456

     

+ Carriage in

8,900

     

- Returns out

(12,300)

147,056

   

Less closing stock

 

(10,250)

   

Cost of sales

     

(152,406)

Gross profit

     

300,322

Less Expenses

       

Wages & salaries

 

102,763

   

Motor expenses

 

20,000

   

Rent

 

40,152

   

Rates

 

15,689

   

Insurance

 

15,000

   

Marketing & sales

 

4,520

   

Office expenses

 

5,200

   

Sundry expenses

 

2,900

 

(206,224)

Net Profit

     

94,098

 

Balance sheet as at 31 December 2005                               

 

Fixed Assets

     

Furniture

   

85,300

Equipment

   

80,309

Adventure equipment

   

167,079

     

332,688

Current Assets

     

Stock

10,250

   

Debtors

40,000

   

Cash

1,160

   

Bank

45,000

96,410

 
       

Current Liabilities

     

Creditors

70,000

(70,000)

26,410

       

Long Term Liabilities

     

Loan

   

(100,000)

     

259,098

       

Financed by

     

Capital

   

200,000

Profit & loss

   

94,098

Drawings

   

(35,000)

     

259,098