Solution 6.4 – Niall Daly

Income Statement for year ended 31 January


€

€


€

Sales




282,233

Less cost of sales





Opening inventory


10,900



Purchases

102,763




+ Carriage in

10,152




- Returns out

(7,894)

105,021



Less closing inventory


(12,000)



Cost of sales




(103,921)

Gross profit




178,312

Less Expenses





Wages & salaries


78,456



Motor expenses


12,356



Rent


59,400



Rates


12,456



Insurance


15,000



Sundry expenses


4,520



Light and heat


12,564


(194,752)

Net loss




(16,440)






Statement of Financial position as at 31 January


€

€

€

Non Current Assets




Office furniture



56,000

Office equipment



40,000

Plant and equipment



70,120




166,120

Current Assets




Inventory


12,000


Cash


560

12560





178,680

Liabilities & Capital

Current Liabilities




Creditors


56,120


Bank


21,300

77,420





Long Term Liabilities




Loan



40,000





Capital


90,000


Profit & loss


(16,440)


Drawings


(12,300)

61,260




178,680