PROBLEM NO 28.

8
INCOME STATEMENT
FOR THE YEAR ENDED FEB 28, 20X7
$ $ $
Sales 157,165
Less Cost of Goods Sold
Opening inventory 4120
Purchases 92800
Closing Inventory -2400
Discount (Rec) 160 94360
Gross Profit 62,805

Less Other Expenses

Rent 3170
Salaries & wages 31740
Discounts (Allowance) 820
Bad debts written off 730
Van running costs 687
Increase in provision 91
Dep. Office furniture 380
Dep.Delivery van 1250 38,868
Net Profit 23,937
BALANCE SHEET
ASSETS LIABILITIES
NON-CURRENT ASSETS $ Current Liabilities

Office furniture 2900 Accrued (340+72)

less Depreciation -380 Creditors
Delivery Van 2500 Total
Total Non-Current assets 5020

CURRENT ASSETS

Cash at bank 4100 Capital at Start

cash in hand 324 Add Profit
Debtors 12316 Less Drawing
Less Provision for d.d+I.P -496
Prepaid expenses 230
Closing Inv 2400
Total Current Assets 18874

TOTAL ASSETS 23,894 TOTAL LIABILITIES

$

412
5,245
5657

11400
23,937
-17,100
18237

23,894
PROBLEM NO 28.9
INCOME STATEMENT
FOR THE YEAR ENDED 31 AUGUST, 20X8
$ $ $
Sales 40,900
less Cost of Good Sold
Opening Inventory 8,200
Purchases 26,000
less Closing Inventory -9100 25,100
Gross Profit 15,800

less Other Expenses

Rent (4400+400) 4,800
Business rates (1600-300) 1,300
Sundry Expense 340
Dep on motor vehicle 1800 8240

Net Profit 7560

BALANCE SHEET

Current Assets $ Current Liabilities $

Debtors 1160 Accrued 400
Bank 1,500 Creditors 2100
Prepaid Business rates 300 Total 2500
Closing Inventory 9100
Total 12,060

Non-Current Assets Capital at Start 19,700

Motor Vehicles 9000 Add Profit 7,560
less Depreciation -3000 less Drawing -11,700
Total 6000 Total 15,560

TOTAL ASSETS 18,060 TOTAL LIABILITIES 18,060

PROBLEM NO 28.10
"INCOME STATEMENT"
FOR THE YEAR ENDED MARCH 31, 20X9
$ $ $
Sales 127,245
less Return Inward -3,486
Net Sales 123,759

less Cost of Goods Sold

Opening inventory 7,940
Purchases 61420
less Return Outward -1356
less Closing Inventory -6805 61199
Gross Profit 62560
Add Discount Rec 62
62622
less Other Expenses
Discount (Allowance) 2480
Carriage Outward 3210
Rent & insurance 8870
less Rent Prepaid -600
Incr. provision for d.d 110
Wages & Salaries 39200
Accrued wages & salaries 3500
General Office expense 319
Office expense owing 16
Dep. Fixtures & fitting 190
Dep. Van 1400 58,695
Net Profit 3927
"BALANCE SHEET"
Non-Current Assets $ Current Liabilities $
fixtures & fitting 1900 Accrued wages & salaries 3500
less Depreciation -190 Creditors 11400
van 5600 Expense owing 16
less Depreciation -1400 Bank overdraft 2490
Total 5910 Total 17406

Current Assets
Cash 140 Capital at Start 25200
Debtors 12,418 Add Profit 3927
less Provision -740 less Drawing -21400
Prepaid Rent 600 Total 7727
Closing Inventory 6805
Total 19223

TOTAL ASSETS 25,133 TOTAL LIABILITIES 25,133