In: Accounting
“The following balances were taken from Jane's books who is a sole trader and operates a catering business.
Jane's trial balance for the year to 30th June 2019 was as follows:
Trial Balance |
Dr (£) |
Cr (£) |
Equipment at cost |
42,000 |
|
Accumulated depreciation of equipment as at 1st July 2018 |
35,000 |
|
Inventory as at 1st July 2018 |
50,800 |
|
Debtors |
32,000 |
|
Bank / cash |
112,678 |
|
Creditors |
23,027 |
|
Provision for doubtful debts as at 1st July 2018 |
1,280 |
|
Long term loan (at 10% per annum) |
50,000 |
|
Owners capital |
30,640 |
|
Retained profits as at 1st July 2018 |
62,901 |
|
Sales |
353,800 |
|
Purchases |
185,000 |
|
Motor expenses |
34,890 |
|
Loan interest (all relating to long term loan) |
2,500 |
|
Insurance |
56,790 |
|
Rent |
24,500 |
|
Office expenses |
14,890 |
|
Bad debts written off |
600 |
|
Totals |
556,648 |
556,648 |
Additional information
Required
JANE
INCOME STATEMENT
FOR THE YEAR ENDING AT 30 JUNE 2019
PARTICULARS AMOUNT ( IN £ )
Sales 353800
TOTAL INCOME 353800
Purchases 185000
Changes in Stock ( 50800 - 35200 ) 15600
Motor expenses 34890
Loan Interest 2500
Insurance ( 56790 - 1500 ) 55290
Rent ( 24500 + 2050 ) 26550
Office Expenses 14890
Bad Debts Written off ( 32000 * 6%) 1920
Depreciation ( 7000 * 25%) 1750
TOTAL EXPENSES 338390
NET PROFIT 15410
JANE
STATEMENT OF FINANCIAL POSITION
AS ON 30 JUNE 2019
PARTICULARS AMOUNT ( IN £ )
Equipment at cost 42000
Less: Accumulated Depreciation (36750) 5250
Inventory as at 30 June 2019 (Lower of Cost or NRV) 35200
Debtors 32000
Bank / Cash 112678
Prepaid Insurance 1500
TOTAL ASSETS 186628
Owners Capital 30640
Retained Profit as at 30 June 2019 ( 62901+ 15410 ) 77311
Creditors 23027
Provision for doubtful debts as at 30 June 2019 ( 1280 + 1920 ) 3200
Long term Loan 50000
Outstanding Rent 2050
Outstanding for motor vehicle repair 400
TOTAL LIABILITIES 186628