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    Solution NIng

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    fahim tusar
    Ning's income statement for the year ended September 30, 2015 shows revenues of $240,350 with a gross profit of $129,050. Total operating expenses were $107,000 resulting in a net profit of $36,200. Ning's statement of financial position as of September 30, 2015 lists total assets of $158,800 including non-current assets of $104,500 and current assets of $54,300. Total liabilities were $97,600 consisting of current liabilities of $57,600 and long-term liabilities of $40,000. Owner's capital was $61,200.

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    Solution NIng

    Uploaded by

    fahim tusar
    96 views3 pages
    Ning's income statement for the year ended September 30, 2015 shows revenues of $240,350 with a gross profit of $129,050. Total operating expenses were $107,000 resulting in a net profit of $36,200. Ning's statement of financial position as of September 30, 2015 lists total assets of $158,800 including non-current assets of $104,500 and current assets of $54,300. Total liabilities were $97,600 consisting of current liabilities of $57,600 and long-term liabilities of $40,000. Owner's capital was $61,200.

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    Ning's income statement for the year ended September 30, 2015 shows revenues of $240,350 with a gross profit of $129,050. Total operating expenses were $107,000 resulting in a net profit of $36,200. Ning's statement of financial position as of September 30, 2015 lists total assets of $158,800 including non-current assets of $104,500 and current assets of $54,300. Total liabilities were $97,600 consisting of current liabilities of $57,600 and long-term liabilities of $40,000. Owner's capital was $61,200.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    96 views3 pages

    Solution NIng

    Uploaded by

    fahim tusar
    Ning's income statement for the year ended September 30, 2015 shows revenues of $240,350 with a gross profit of $129,050. Total operating expenses were $107,000 resulting in a net profit of $36,200. Ning's statement of financial position as of September 30, 2015 lists total assets of $158,800 including non-current assets of $104,500 and current assets of $54,300. Total liabilities were $97,600 consisting of current liabilities of $57,600 and long-term liabilities of $40,000. Owner's capital was $61,200.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    Ning

    Income Statement for the year ended September 30, 2015


    Details $ $ $
    Revenues 248,200
    Less: Returns inwards (7,850)
    Net Revenue 240,350
    Less: Cost of goods sold
    Opening inventory 20,450
    Add: Purchases 104,750
    Add: Carriage inwards 3,400
    Goods available for sale 128,600
    Less: Closing inventory (17,300)
    Cost of sale (111,300)
    Gross profit 129,050
    Add: Discount received 8,250
    Commission received 5,900
    Adjusted gross profit 143,200 PDD= (44400-640
    Less: Operating expenses Increase in PDD= 1900-15
    Advertising expense 10,800
    Less: Prepaid (1500 x 3/5) (900) Capital Expenditure:
    9,900
    Distrubution expenses 17,200
    Add: Accrued 2,600 Revenue Expenditure:
    19,800
    Electricity 4,230
    Wages & salaries 35,000
    Insurance 5,000 Straight line= Cost x rate
    Loss on disposal 2,270
    Depreciation of leasehold premises [80000/20] 4,000 Reducing balance= Book v
    Depreciation of Computer Equipment [(75000-23000)x25%] 13,000
    Depreciation of Fixtures & Fittings [30000 x 10%] 3,000 Book value= Cost - Accum
    Bank loan interest paid 3,000
    Add: Accrued loan interest [(50000x8%)-3000=1000] 1,000 Leasehold property's dep
    4,000
    Bad debt 6,400 Gross profit= Sales/Reven
    Increase in provision for doubtful debt 400
    Total Operating Expenses (107,000)
    Net Profit 36,200

    Ning
    Statement of Financial Position as at September 30, 2015
    Details $ $ $
    Non-current Assets
    Leasehold Premisies 80,000
    Less: Accumulated Depreciation (20000+4000) (24,000)
    56,000
    Computer Equipment 75,000
    Less: Accumulated Depreciation (23000+13000) (36,000)
    39,000
    Fixtures and Fittings 30,000
    Less: Accumulated Depreciation (17500+3000) (20,500)
    9,500
    Total Non-current assets 104,500
    Current Assets
    Closing inventory 17,300
    Trade receivables (44400-6400) 38,000
    Less: Provision for doubtful debt (1,900)
    36,100
    Other receivables: Prepapid Advertising 900
    Total Current Assets 54,300
    Total Assets 158,800
    Liabilities and Capital
    Current Liabilities
    Trade Payables 38,700
    Bank overdraft 5,300
    Other payables: Accrued distribution expense 2,600
    Accrued Loan Interest 1,000
    8% Bank Loan 10,000
    Total Current Liabilities 57,600
    Add: Long term Liabilities
    8% Bank Loan 40,000
    Total Liabilities 97,600
    Financed by:
    Capital 50,000
    Add: Net profit 36,200
    Less: Drawings (25,000)
    Owner's Capital 61,200
    Total Liabilities and Capital 158,800
    PDD= (44400-6400) x 5%= 1900
    Increase in PDD= 1900-1500=400

    Capital Expenditure: If an organization buys new non-current assets or


    adds value to the existing assets then it is called
    capital expenditure. These are reported in the
    balance sheet.
    Revenue Expenditure: The day to day operational expenses are called
    revenue expenditures. These are reported in the
    expenses section of the income statement.

    Straight line= Cost x rate

    Reducing balance= Book value x rate

    Book value= Cost - Accumulated Depreciation

    Leasehold property's depreciation= Value of Lease/ No. of years of Lease

    Gross profit= Sales/Revenue - Cost of goods sold

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