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2246 Chapter 10
2246 Chapter 10
2246 Chapter 10
Q1
(a) Antonia
Trading and Profit and Loss Account for the year ended 31 December 2003
$ $ $
Sales 120 000
Less Returns 7 300 112 700
Less Cost of sales
Stock at 1 January 2003 5 660
Purchases 62 400
Less Returns 4 190 58 210
63 870
Less Stock at 31 December 2003 8 000 55 870
Gross profit 56 830
Less
Wages (17 310 + 558) 17 868
Rent (3200 – 800) 2 400
Heating and lighting (2772 + 328) 3 100
Motor expenses 1 284
Interest on loan (500 + 250) 750 25 402
Net profit 31 428
Current assets
Stock 8 000
Trade debtors 12 440
Prepayment: Rent 800
Bank 5 055
26 295
Current liabilities
Trade creditors 6 167
Expense creditors 1 136 7 303 18 992
50 392
Less: Long term loan 10 000
40 392
(a) Desmond
Trading and Profit and Loss Account for the year ended 31 March 2004
$ $ $
Sales 219 740
Less returns 17 420 202 320
Less Cost of sales: Stock 9 000
Purchases 100 100
Less returns 8 777 91 323
100 323
Carriage inwards 5 500
105 823
Less stock 11 000 94 823
Gross profit 107 497
Add other income: Rent receivable 2 400
Interest receivable 1 000
Discounts receivable 1 040 4440
111 937
Less: Wages 67 000
Rent payable 10 000
Discounts allowed 2 826
Carriage outwards 8 200
Sundry expenses 1 763 89 789
Net profit 22 148
Capital 70 000
Profit 22 148
92 148
Drawings 22 088
70 060