2.

3 SOFP Presentation
Use these lines to make notes as you study the lesson.

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

IGACC0904 AB C 51 © EDUSEEDS 2023

1.

(i) Trading Account and the Income Statement

(ii) Statement of Financial Position, using the Vertical Format. Closing
Inventory at 31 Mar 2018 was $4,500.
Trial Balance as at 31 March 2018 ($)
Ledger Account Debit Credit
Opening Inventory 5,560
Sales & Purchases 16,722 22,394
Buildings 3,756
Motor Vehicles expenses 130
Capital 12,730
Returns in & out 550 1,466
Travel Expenses 220
Furniture & fittings 1,500
Debtors & Creditors 5,954 2,772
Carriage out 280
Cash in Hand 150
Salaries & Commission 1,650
Motor vans 1,600
Office Expenses 750
Drawings 750
Motor Vehicle Repairs 300
Carriage Inwards 398
Bank loan (8 years) 1,038
Office repairs 130
40,400 40,400

IGACC0904 AB C 52 © EDUSEEDS 2023

IGACC0904 AB C 53 © EDUSEEDS 2023
IGACC0904 AB C 54 © EDUSEEDS 2023
2. Below is the Trial Balance of Joshua as at 30 June 2018.

DR CR
$ $
Capital (1 July 2017) 49,000
Drawings 16,100
Fittings & Equipment 7,600
Cash in hand (Petty Cash) 280
Purchases 222,020
Sales 304,320
Returns Outwards 1,580
Inventory (1 July 2017) 40,300
Motor Vans 11,500
Wages 26,940
Rent & Rates 7,180
Water & Light 2,340
Cash at Bank 15,380
Sundry Expenses 3,960
Debtors 15,360
Creditors 19,200
Motor Van Expenses 7,380
Discount Received 2,240
376,340 376,340

Required: Prepare the income statement and statement of financial position

using the vertical format for the period ended 30 June 2018. Please take into
account the closing inventory value of $29,540.

IGACC0904 AB C 55 © EDUSEEDS 2023

IGACC0904 AB C 56 © EDUSEEDS 2023
3. ay 2010.

FOLIO DEBIT CREDIT

Baking equipment 100 12,000

Debtors 101 -

Bank 102 14,800

Capital 300 15,000

Drawings 301 500

Loan 200 1,000

Creditors 201 -

Services rendered 400 15,500

Salaries 500 4,000

Telephone expense 501 200

31,500 31,500

Required:

i) Calculate the changes in equity for George Catering for the period ending
31st May 2010.

ii) Prepare the Statement of Financial Position using the Vertical Format of
presentation for the period ended 31 May 2010.

IGACC0904 AB C 57 © EDUSEEDS 2023

IGACC0904 AB C 58 © EDUSEEDS 2023
4.
prepare a Statement of Financial Position as at 31 December 2018.

Trial Balance as at 31 Dec 2018

Dr Cr
$ $
Sales 18,462
Purchases 14,629
Motor expenses 520
Salaries 2,150
Rent 670
Insurance 111
General Expenses 105
Premises 1,500
Motor Vehicles 1,200
Debtors 1,950
Creditors 1,538
Cash at bank 1,654
Capital 5,424
Drawings 895
Cash in Hand 40
25,424 25,424

Notes:

Inventory at 31 Dec 2018 was $2,548

Net profit for the period is $ ___________

IGACC0904 AB C 59 © EDUSEEDS 2023

IGACC0904 AB C 60 © EDUSEEDS 2023
5.
trading, you are required to draw up the Statement of Financial Position at 30
June 2018.

Trial Balance as at 30 June 2018

Dr Cr
$ $
Sales 28,794
Purchases 23,803
Salaries & Wages 3,164
Rent 854
Light & Heat expenses 422
Sundry Expenses 506
Insurance 105
Motor running expenses 1,133
Premises 50,000
Fixtures 1,000
Debtors 3,166
Creditors 1,206
Capital 65,900
Motor Vans 5,500
Drawings 2,400
Cash at Bank 3,847
95,900 95,900

Notes:

Inventory at 30 June 2018 was $4,166

Net profit for the period is $ ___________

IGACC0904 AB C 61 © EDUSEEDS 2023

IGACC0904 AB C 62 © EDUSEEDS 2023