DAISY AND VICTOR

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31ST DECEMBER 2015 WO
£ £ £
Sales 160,000
Less: Returns in wards 1,500 158,500
Less: COST OF SALES
Inventory 11,500
Add: Purchases 85,000
Carriage inwards 5,800
Less: Returns outwards 2,500 88,300
Goods Available for Sale 99,800
Less: Closing Inventory 12,500
Cost of Sales 87,300
GROSS PROFIT 71,200
Less: Operating Expenses
Rent 3,750
Postage and Telegram 500
Advertising Expense 9,000
Telephone charges 500
Salalries and wages 26,250
Printing and Stationery 750
Commision 5,000
Travelling Expenses 2,000
Depreciation expense: Furniture 250
Plant and Machinery 4,000
Motorvehicle 4,172 8,422
Bad debt expense 2,025
Total expenses 58,197
NET PROFIT 13,003
Less: Interest on capital
Daisy 3,250
Victor 2,000 5,250
Less: Salary to Victor 1,800 7,050
Residual Profits 5,953
Daisy 3,572
Victor 2,381 5,953

DAISY AND VICTOR

STATEMENT OF FINANCIAL POSITION
 AS AT 31ST DECEMBER 2015
NON CURRENT ASSETS Cost Acc Depn NBV
Good will 10,000 10,000
Plant and Machinery 40,000 4,000 36,000
Motorvehicle 20,860 4,172 16,688
Furniture 5,000 250 4,750
75,860 8,422 67,438
CURRENT ASSETS
Closing inventory 12,500
Accounts Receivable 40,500
Less: Provision for bad debts 2,025 38,475
Cash in hand 16,000
Total current assets 66,975
TOTAL ASSETS 134,413
EQUITY & liabilities
Capital A/C
Daisy 65,000
Victor 40,000 105,000
Current Account
Daisy 2,822
Victor 3,181 6,003
Total Equity 111,003
CURRENT LIABILITIES
Accounts Payable 14510
Bank 8900
Total current Liabilities 23410
TOTAL EQUITY AND LIABILITIES 134,413
 WORKING
Depn cost rate Amount
Furniture 5000 250
P/M 40,000 10% 4000
MV 20,860 20% 4172

PROVISION FOR BAD DEBTS

A/C 40,500 DR baddebts
Rate 5% 2025 CR provision for bad debt

INTEREST ON CAPITAL
Rate Capital
Daisy 5% 65000 3250
Victor 5% 40,000 2000

Share of profits
Ratio Profits Amount
Daisy 3 5,953 3571.8
Victor 2 5,953 2381.2
5

DAISY AND VICTOR

DR CURRENT ACCOUNT
Daisy Victor
£ £
Drawings 4000 3000 Interest on capital
Balance c/d 2,822 3,181 Share Of Profit
6,822 6,181 Salary

Balance B/d
 CR
Daisy Victor
£ £
3,250 2,000 CR DR
3,572 2381 Daisy 6,822 4000 2,822
1,800 Victpr 6,181 3000 3,181
6,822 6,181
2,822 3,181