Question

SAM does not keep a full set of double entry accounts.

Summarised Bank Account:-
Debit entries: Receipts from customers 60500
: Sale of Non current asset 750

Credit entries : Payments to suppliers 34900
: Wages 15000
: Heating 2500
: Drawings   5000
: Purchase of Non current asset 8000
: General Expenses 6000

Additional Information:
1 May 2017 30 April 2018
Bank 100 cr ?
Inventory 5250 11000
Trade Receivables 9750 8400
Trade Payables 10500 9300
Non current assets (book value) 40000 42000
Heating 600 prepaid 250 accrued
6% Bank Loan 20000 20000
Capital 25000 ?

The Non current asset sold during the year had a book value of $1000

Prepare

(i) An Income Statement for the year ended 30 April 2018
(ii) A Statement of Financial Position as at 30 April 2018

Answer 1

Calculation parts

Bank account at Beginning balance (credit balance means Negative Balance)		(100)
Add: Cash Receipts
Receipts from customers	60,500
Sale of Non-current asset	750	61,250
Less: Cash Payments
Payments to suppliers	34,900
Payments to Wages	15,000
Payments to Heating	2,500
Payments to Drawings	5,000
Purchase of Non-current asset	8,000
General Expenses	6,000	(71,400)
(Negative) Bank account at ending balance		$       (10,250)

Receipts from customers	60,500
Trade receivable at endings	8,400
Trade receivable at beginings (less)	(9,750)
Sales Revenue	$        59,150
Payments to suppliers	34,900
Trade payable at endings	9,300
Trade payables at beginings (less)	(10,500)
Purchase of inventory	$        33,700
Purchase of inventory	33,700
Inventory at beginings	5,250
Inventory at ending (less)	(11,000)
Cost of goods sold	$        27,950
Non-current assets at beginning	40,000
Purchase of Non-current asset	8,000
Book value of Sale of Non-current asset (less)	(1,000)
Non-current assets at ending (less)	(42,000)
Depreciation expense	$          5,000
Book value of Sale of Non-current asset	1,000
Sale of Non-current asset (less)	750
Loss on sales of Non current asset	$              250
Prepaid heatings at beginings	600
Payments to Heating	2,500
accrued heatings at ending	250
Heating expense	$          3,350

Answer

Income statements
For the year ended 30 April 2018
Sales Revenue		$        59,150
Less: Cost of goods sold		$        27,950
Gross Profit		$        31,200
Less: operating expense
Depreciation expense	$          5,000
Heating expense	$          3,350
Wages expense	$        15,000
General Expenses	$          6,000
Total operating expense		$        29,350
Operating Profit		$          1,850
Less: Loss on sales of Non current asset		$              250
Net income		$          1,600

statement of owner's equity
For the year ended 30 April 2018
Beginning Capital		$        25,000
Add: Net income		$          1,600
Less: Drawings		$        (5,000)
Ending Capital balance		$        21,600

Statement of Financial Position
As at 30 April 2018
Assets
Bank
Inventory		$        11,000
Trade Receivable		$          8,400
Non Current assets		$        42,000
Total assets		$        61,400
Liability and equity
Trade Payable		$          9,300
Accrued Heating Expense		$              250
Bank overdraft (or Bank credit) (Negative Bank balance)		$        10,250
6% Bank Loan		$        20,000
Capital		$        21,600
Total Liability and equity		$        61,400