debtors ba1.1.

2020 4200 year

creditors b1.1.2020 5600 0
stock 1.1.2020 800 1
cash paid to suppliers 114000 2
cash received from de 330000 3
cash purchases 124000 4
ordinary shares 200000 5
discount received 740 6
loan from zia bank ltd 120000
x bad debts written off 280 i) compute the NPV of th
sales returns 90 ii) compute the IRR of th
purchase returns 110 iii) using NPV advise manag
debtors cheque dish 900
x discount allowed 1300
cash sales 53000 particulars
salaries 5400 sales
debtors ba1.1.2020 2000 capital
creditors b1.1.2020 2600 debtors
stock 1.1.2020 600 creditors
salaries
i)prepare a debtors and creditors control accounts rent
ii)determine total sales and total purchases for the year ended 30.11.20 loans
iii)statement of profit and loss for the year ended 30.11.2020 inventory s
using the information above and excel page, compute; drawings
i)four profitability ratios purchases
ii)two liquidity ratios cash at ba
iii)debt equity ratio motor vehi
iv)net profit to total assets ratio land
v)return on equity ratio repairs
electricity

i) profit/loss for the ye

ii) financial positio
 ;
cash flows discounting factors(20%)
-380000
90000
100000
110000
120000
40000
35000

i) compute the NPV of the project using the above data

ii) compute the IRR of the project using the above data
iii) using NPV advise managemnt whether the project is viable

debit credit
38000000
30000000
1000000
12000000
6000000
3000000
20000000
1000000
8000000
19000000
12000000
14000000
26000000
2000000
8000000

i) profit/loss for the year ended 30.november.2019

ii) financial position as 30.november.2019
date details debt(shs) credit(shs)
"000" "000"
debtors bal 4200
creditors bal 5600
stock 800
cash paid to suppliers 114000
cash received from debtors 330000
cash purchases 124000
ordinary shares 200000
discount received 740
loan from zia bank ltd 120000
bad debts written off 280
sales returns 90
purchase returns 110
debtors cheque dishonoured 900
discount allowed 1300
cash sales 53000
salaries 5400
debtors bal 2000
creditors bal 2600
stock 600
bal 210040

gross prrofit margin= (𝑔𝑟𝑜𝑠𝑠

𝑝𝑟𝑜𝑓𝑖𝑡 )/𝑛𝑒𝑡𝑠𝑎𝑙𝑒𝑠 𝑥
100
-1.46286146286146

net profit margin= (𝑛𝑒𝑡

𝑝𝑟𝑜𝑓𝑖𝑡)/(𝑛𝑒
𝑡 𝑠𝑎𝑙𝑒𝑠)
-1.58079758079758

operating ratio= (𝑐𝑜𝑠𝑡 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠+𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔

𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠)/(𝑛𝑒𝑡 𝑠𝑎𝑙𝑒𝑠)
130310.131922132

cost of goods sold= (𝑐𝑜𝑠𝑡 𝑜𝑓

𝑠𝑎𝑙𝑒𝑠)/(𝑛𝑒𝑡
𝑠𝑎𝑙𝑒𝑠)
2.46286146286146

debt to equity ratio= (𝑡𝑜𝑡𝑎𝑙

𝑑𝑒𝑏𝑡
)/(𝑡𝑜𝑡𝑎𝑙
𝑒𝑞𝑢𝑖𝑡𝑦)
 (𝑡𝑜𝑡𝑎𝑙
𝑑𝑒𝑏𝑡
)/(𝑡𝑜𝑡𝑎𝑙
𝑒𝑞𝑢𝑖𝑡𝑦)

net profit to total assets= (𝑛𝑒𝑡

𝑝𝑟𝑜𝑓𝑖𝑡)/(𝑡𝑜
𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)

return on equity ratio= (𝑛𝑒𝑡

𝑖𝑛𝑐𝑜𝑚𝑒)/(𝑠ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟
𝑒𝑞𝑢𝑖𝑡𝑦)
 TOTAL SALES
DATE DETAILS FOLIO DEBIT CREDIT
sales returns 90
cash sales 53000
discount allowed 1300
debtors bal 4200
debtors bal 2000
BAL b/d 48010

TOTAL PURCHASES
DATE DETAILS FOLIO DEBIT CREDIT
creditors bal 5600
cash purchases 124000
purchase returns 110
discount received 740
creditors bal 2600
bal b\d 116430

PROFIT & LOSS ACCOUNT

DETAILS SHS SHS SHS
cash sales 53000
less sales returns 90
net sales 52910
less cost of sales
opening stock 6200
purchases 124000
less return outwards 110
net purchases 124110
goods available for sale 130310
less closing stock 0
cost of sales 130310
gross profit -77400
add other incomes
discount received 740 740
total income -76660
less admin expenses
bad debts 280
salaries 5400
duscount allowed 1300
total expenses 6980
net profit -83640
 PROFIT & LOSS ACCOUNT
DETAILS AMOUNT AMOUNT AMOUNT
sales 38000000
Net sales 38000000
less cost of sales
opening stock 1000000
purchases 19000000
goods available for sale 20000000
cost of sales 20000000
gross profit 18000000

less operating expenses

salaries 6000000
rent 3000000
repairs 2000000
electricity 8000000 19000000
net profit -1000000
 FINANCIAL POSITION
DETAILS AMOUNT AMOUNT AMOUNT
fixed assets
motor vehicles 14000000
land 26000000 40000000
Current assets
debtors 1000000
cash at bank 12000000 13000000
total assets 53000000
current liabilities
creditors 12000000
loans 20000000
total liabilities 32000000
net assets 21000000
capital 30000000
net profit -1000000
less drawings 8000000
equity 21000000