Sole tradership

Statement of Profit or Loss for X year ended X

    £
Sales   170000
Cost of sales W1 102500
Gross profit   67500
Admin & Distribution expenses W4 40450
Operating profit (loss) 27050
rates   1800
`net profit 25250

Gross profit = Sales-Cost of sales = 170000-102500 = 67500

Operating profit (loss) = Gross profit-Admin & Distribution expenses=67500-40450=27050
net profit = Operating profit (loss)-rates = 27050-1800 = 25250

Statement of financial position for X as at X  

           
      £    
Assets          
Add up in a
Non-current assets W2 58000 working
           
Current assets        
Inventory (closing)   11500    
Trade receivables   6000    
Prepayments W3 1500    
Bank     0    
      19000    
Total assets     77000    

Total assets= Non-current assets + Current assets = 77000

 Current liabilities = Overdraft at bank+ Trade payables+ Accrual = 29500+5000+250 = 34750

Equity = Capital + drawings + retained profit = 36000+(-19000) +25250 = 42250

Non-Current liabilities = Loan = 0

Total equity and liabilities = Current liabilities+ Equity + non-Current liabilities = 34750+42250 = 77000

Equity and Liabilities

           
Equity          
Capital 36000    
-drawings   -19000    
Retained profit   25250    
      42250 Should agree to the SOCIE
           
Non current liabilities        
Loan        
           
Current liabilities        
Overdraft at bank   29500    
Trade payables   5000    
Accrual   W3 250    
           
      34750    
           
Total equity and liabilities   77000    

Workings should be written at end of other statements. Side by side on template just to keep to one page
 -"w" working numbers can be changed

   

Marks given in exams for workings so they should be written down.

   
W1 Cost of sales  
Opening inventory 9000
Purchases 105000
Closing inventory 11500
Cost of sales 102500
   
   
W2 If more than one Non-current asset

motor vehicle 8000

building 50000
Non current assets 58000
   
   
W3 Prepay/Accrual working if needed
light and heat accured 150
Prepaid rent -1500
accured petrol 10
W4 Expenses if prepay/accrual
Expenses on TB 41700
Prepay/Accrual -1250
Expenses total 40450

W1 Cost of sales = Opening inventory+ Purchases+ Closing inventory

= 9000+105000+11500=102500

W2 If more than one non-current asset= motorvehicle+building = 8000+50000= 58000

W3 Prepay/Accrual working if needed = light and heat accured+ Prepaid rent= 150+(-1500)

= 100
W4 Expenses if prepay/accrual = Expenses on TB+ Prepay/Accrual = 41700 + (-1250)= 40450

`     
£  
Sales adjustment 168000  
sales 2000  
 Sales not recorded 170000  
     
     
wages and salaries 31000  
motor expense and petrol 1000 add 100
rent 6200  
light and heat 1800  
other exp 1700  
total exp 41700  
     
     
     
Bank overdraft -29500  
     
Trade receivable 4000  
missed credit 2000  
Adjusted trade receivable 6000  
     
     
prepaid rent    
Rent paid in advance 2000  
prepaid rent 1500  

Sales not recorded = sales adjustment + sal+s = 168000+2000 = 170000

total exp = wages and salaries+ motor expense and petrol+ rent+ light and heat+ other exp

=31000+(1000+100)+6200+1800+1700= 41700

Bank overdraft = -29500

Adjusted trade receivable = Trade receivable+ missed credit= 4000+2000= 6000
Prepaid rent = Rent paid in advance* 75% = 2000*(75/100)= 1500