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Introduction To The Worksheet: Review Questions
Introduction To The Worksheet: Review Questions
Introduction To The Worksheet: Review Questions
3
Re-cover Upholstery Repairs worksheet
Cash + Office + Office + Vehicle + Sewing + Account + + Prepaid = Note + Account + Equity + Profit & Loss
equip. supp. machine receive. Rent Payable Payable
Jan 1 10 000 10 000
20 000 20 000
24 000 24 000
4 -350 350
4 –100 850 750
6 500 500
6 1000 1000
7 –1000 5 000 4 000
8 600 600
11 NO ENTRY
12 –200 –60 pe
–10 po
–130 el
13 700 700
13 1200 1200
14 –750 –750
15 –300 –300
16 300 300
17 700 700
18 –550 –550 w
21 400 1200 1600
23 1000 –1000
24 –70 –70 pe
25 –550 –550 w
28 100 500 600
31 –850 –850
Adj Rent –350 –350
Wages 471 –471
Total 10 130 + 20 000 + 300 + 24 000 + 5 000 + 2 900 + = – 4 000 771 53 700 3 859
$ $
Sales revenue 6900
Expenses
Electricity 130
Office supplies 850
Petrol 130
Postage 10
Rent 350
Wages 1571 3 041
Net profit $3 859
$ $ $
Current assets
Cash 10 130
Office supplies 300
Account receivable 2 900
Total current assets 13 330
Non-current assets
Office equipment 20 000
Vehicle 24 000
Sewing machine 5 000
Total non-current assets 49 000
Total assets 62 330
Current liabilities
Account payable 771
Note payable 4 000
Total current liabilities 4 771
Total liabilities 4 771
Owners’ equity
I. Cover, Capital 54 000
Profit 3 859 57 859
4 a
Boat worksheet
Day Cash + Boats + Rent + Furniture = Loans + Equity + Profit & Ref
(Stock) Loss
1 10 000 10 000
2 20 000 20 000
3 –500 500
4 –7400 7400
5 –2 900 2900
6 No entry
8 –300 –300 adver
9 5500 5500 sales
10 3200 3200 sales
11 –15 000 15 000
12 –20 –20 clean
15 –300 –300 adver
17 –800 –800 adver
18 –500 500
19 No entry
20 1200 1200 sales
22 19 000 19 000 sales
23 –8 000 8 000
24 -180 -180 Clean
25 -300 -300 adver
26 -3 000 -3 000 Repay
loan
27 No entry
29 –900 –900 rep.
30 9300 9300 sales
31 –180 – 180 elect
Adj Rent -1000 – 1000 rent
Adj Boats -30 400 –30 400
Bal. 27 920 + nil + nil + 2900 = 17 000 + 10 000 + 3820
b
Joe’s Boats
Income statement for the period ending 31 March 20XX
$ $
Sales revenue 38 200
Cost of boats sold 30 400
Gross profit 7800
Expenses 1700
Advertising 200
Cleaning 180
Electricity 1000
Rent 900
Repairs 4020
Net profit $3820
c
Joe’s Boats
Balance sheet as at 31 March 20XX
$ $ $
Current assets
Cash 27 920
Total current assets 27 920
Non-current assets
Furniture 2900
Total non-current assets 2900
Total assets 30 820
Current liabilities
Loan 17 000
Total current liabilities 17 000
Total liabilities 17 000
Owners’ equity
Capital 10 000
Profit 3820
Total owners’ equity 13 820
5 a
Toy business worksheet
Assets = Liabilities s + Equity
Day Transaction Cash + Shop Office + Prepaids + + Inventory Creditors = Profit & Loss + Owners’
fittings equip. $ $ $ equity
$ $ $
June1 Equity 150 000 150 000
Rent –600 600
June 2 Shop fittings 27 000 27 000
Stock –30 000 58 000 28 000
June 3 No entry
June 4 Telstra –1250 500 –750
June 5 Office equip. 5600 5600
June 6 Caterers –3100 –3100
June 6 Advert 500 –500
June 7 Wages –300 –300
June 7–12 Sales 3456 3456
June 12 No entry
June 12 Cash –5600 –5600
June 12 Cash –500 –500
June 12 Wages –1000 –1000
June 14 Cash refund –375 –375
June 14–19 Sales 6320 6320
June 15 Wages –200 –200
June 16 Creditors –28 000 –28 000
June 21–26 Sales 5321 5321
June 21 Wages –775 –775
June 23 Stock 23 000 23 000
June 28–29 Sales 1289 1289
June 28 Insurance –1200 1200
June 28 Wages –950 –950
Balances 92 536 + 27 000 5600 + 2300 + + 81 000 = 50 000 8436 + 150 000
Rent –600 –600
Advert –500 –500
Goods sold 16 300 –16 300
Balance 92 536 + 27 000 5600 + 1200 + 64 700 = 50 000 –8964 150 000
b
Income statement for month ending 30 June
$ $
Expenses:
Advertising 1000
Catering 3100
Rent 600
Telephone 750
Wages 3225 _____
Total Expenses 8675
$ $
Assets
Current Assets
Cash 92 536
Inventory 64 700
Prepaids 1200
Total current assets 158 436
Non-current assets
Shop fittings 27 000
Office equipment 5600
Total non-current Assets 32 600
Total assets 191 036
Liabilities
Creditors 50 000
Total current liabilities 50 000
Total liabilities 50 000
Owners’ equity
Capital 150 000
Loss (8964)
Total owners’ equity 141 036
6 a
b
Mandy Plover
Income statement for month ending 31 July
$ $
Revenue 6800
Less Expenses
Wages 1500
Rent 1000
Motor Vehicle Lease 1000
Telephone 275
Electricity Fee 50
Office Equipment 475
Rent 780
Bad Debts 115 5195
Supplies
Net Profit 1605
Mandy Plover
Balance sheet as at 31 July
Non-current assets
Fixtures and fittings 1 000
Computer 17 500 18 500
c For the month of July, Mandy has made a profit of $1605. However, this figure is
overstated for the following reasons:
• No expense recorded for electricity or telephone as no account has been received
as at 31 July
• No depreciation recorded for the computer or the signs
• No allowance made for any further bad debts
• Based on the investment of $30 000, Mandy is receiving the following return:
1,605 x12
x 100
30,000
= 64.2 per cent per annum
The other issue Mandy must consider is whether her wages of $750 per fortnight
represent what she could earn elsewhere. If in fact her wages are understated at $750 per
fortnight or $20 000 per annum, then her return on investment is overstated.
Finally the effect of the lease of the BMW must be considered. For July the impact
on profit has only been $1000 but in future months the impact will be $2000 per month.
If Mandy continues to earn the same profit each month then the following figures show
the impact of the BMW:
Return on investment:
30,000
x 100
7,260
b
Jill’s Office Chairs worksheet
Assets = Liabilities + Equity
Day Transaction Cash + Car + Rent + Furniture + Inventory = Profit & Loss + Owners’ equity
$ $ $ $
$ $ $
1 Equity 10 000 10 000
Car 4000 4000
Rent –240 240
Equipment –1600 1600
2 Chairs –7000 7000
5 Advert –400 –400
9 Sales 1200 1 200
Delivery –144 –144
11 Sales 5400 5400
Delivery –600 –600
14 Wages –300 –300
16 Chairs –1400 1400
21 Repairs –300 –300
23 Sales 1800 1800
Delivery -80 –80
24 Advert –400 –400
27 Sales 1350 1350
Sales 700 700
Delivery –200 –200
28 Wages –300 –300
Sales +500 +500
Telephone –60 –60
Electricity –80 –80
Balances 7846 + 4000 + 240 + 1600 + 8400 = 8 086 + 14 000
Rent –240 –240
Chairs Sold –8400 –8400
Balance 7846 + 4000 + + 1600 = –554 14 000
c
Jill’s Office Chairs
Balance sheet at the end of the period
$ $
Assets
Current assets
Cash 7846
Total current assets 7846
Non-current assets
Car 4000
Furniture 1600
Total non-current assets 5600
Total assets 13 446
Liabilities
Owners’ equity
Capital 14 000
Loss (554)
Total owners’ equity 13 446
$ $
Expenses:
Advertising 800
Car repairs 300
Delivery 1024
Electricity 80
Rent 240
Telephone 60
Wages 600 _____
Total expenses 3104
• The gross margin is very low especially when the cost of delivery of $1024 is
considered
• Both wages and advertising are comparatively high
• Depreciation has yet to be charged on the car and furniture
Cash position:
• The cash position has deteriorated during the month
• The cash resources of the business are marginal – on day five the closing cash
balance was only $760
• There is no stock on hand at the end of the period; its replacement will strain
cash resources