| |
Solution 6.6 – Tony Smith
Trading and Profit and Loss Account for year ended 31 October
2005
| |
€ |
€ |
|
€ |
|
Sales |
|
1,973,000 |
|
|
|
- Returns
in |
|
(39,460) |
|
1,933,540 |
|
Less cost
of sales |
|
|
|
|
|
Opening stock |
|
90,000 |
|
|
|
Purchases |
1,517,700 |
|
|
|
|
+ Carriage
in |
25,000 |
|
|
|
|
- Returns
out |
(45,880) |
1,496,820 |
|
|
|
Less closing
stock |
|
(120,000) |
|
|
|
Cost of sales |
|
|
|
(1,466,820) |
|
Gross profit |
|
|
|
466,720 |
|
Add Gains |
|
|
|
|
|
Discount received |
|
15,000 |
|
|
|
Rent received |
|
20,000 |
|
35,000 |
|
Less Expenses |
|
|
|
|
|
Advertising |
|
87,562 |
|
|
|
Carriage out |
|
12,600 |
|
|
|
Communications |
|
9,354 |
|
|
|
Discount allowed |
|
7,200 |
|
|
|
General expenses |
|
7,310 |
|
|
|
Insurance |
|
12,704 |
|
|
|
Light and
heat |
|
24,000 |
|
|
|
Motor expenses |
|
36,000 |
|
|
|
Rent payable |
|
80,000 |
|
|
|
Wages |
|
290,000 |
|
(566,730) |
|
Net loss |
|
|
|
(65,010) |
Balance sheet as at 31 October 2005
|
Fixed Assets |
€ |
€ |
|
€ |
|
Buildings |
|
|
|
1,188,000 |
|
Furniture
& fittings |
|
|
|
237,600 |
|
Vehicles |
|
|
|
100,000 |
| |
|
|
|
1,525,600 |
|
Current Assets |
|
|
|
|
|
Stock |
120,000 |
|
|
|
|
Debtors |
164,400 |
284,400 |
|
|
| |
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
Creditors |
126,900 |
|
|
|
|
Bank |
24,650 |
|
|
|
|
Loan |
50,000 |
(201,550) |
|
82,850 |
| |
|
|
|
1,608,450 |
|
Financed by |
|
|
|
|
|
Capital |
|
|
|
1,744,570 |
|
Profit &
loss |
|
|
|
(65,010) |
|
Drawings |
|
|
|
(71,110) |
| |
|
|
|
1,608,450 |
|