Incomplete Records

Number 1 Sifat
Purchases Ledger control A/c

$ $
Purchases return 1 980 Bal b/d 12 500
Payment 50 500
Discount received 3 250 Credit purchases 52 800
Bal c/d 9 570
65 300 65 300

Total Purchases = Credit purchases + Cash purchases

= 52 800 +16 600 =69 400

(a) Income statement for the month ended 31 October 2011

$
Revenue 92 000
Less return inwards (2 000)
Net revenue 90 000
Less : cost of sales
Opening inventory 17 200
Purchases 69 400
Less Return outwards (1 980)
Less Goods Stolen (72 000 + 7 850 + 1 980 – 69 400 – 17 200) (4 770)
Less Closing inventory (7 850)
Cost of sales (90 000 – 18 000) (72 000)
Gross profit (1/5 x 90 000) 18 000
Add discount received 3 250
Gross income 21 250
Less expenses (4 500)
Less Goods Stolen (4 770)
Profit for the year 11 980
Number 2 Michelle Musa
Sales Ledger control A/c

$ $
Bal b/d 7 500 Discount allowed 860
Credit sales 72 660 Receipts 71 000
Bal c/d 8 300
80 160 80 160

Purchases Ledger control A/c

$ $
Payment 23 000 Bal b/d 3 000
Discount received 560
Bal c/d 3 500 Credit purchases 24 060
27 060 27 060

(a) Income statement for the year ended 31 December 2006

$ $
Revenue (72 660 + 4 600) 77 260
Less : cost of sales
Opening inventory 5 500
Purchases 24 060
Less Closing inventory (4 800)
Cost of sales (24 760)
Gross profit 52 500
Add discount received 560
Gross income 53 060
Less Expenses
Rent (5 200 – 450 + 650) 5 400
Insurance (600 + 80 – 120) 560
Wages 24 300
Discount allowed 860
Creation of Pfdd 440
Depreciation equipment (6 000 – 4 500) 1 500
Depreciation vehicles (10 000 – 7 500) 2 500
Total expenses (35 560)
Profit for the year 17 500
(a) Statement of financial position as at 31 December 2006
$ $ $
Non-current Assets
Equipment 4 500
Vehicles 7 500
12 000
Current Assets:
Inventory 4 800
Trade receivables 8 300
Less Pfdd (440) 7 860
Other receivables: Insurance prepaid 120
Cash and cash equivalent – Bank 7 900
(5 400 + 71 000 + 4 600 – 23 000 – 5 200 – 600 – 24 300 –
20 000)
20 680
Current liabilities
Trade payables 3 500
Other payables: Rent owing 650 (4 150)
Working capital 16 530
28 530
Financed by:
Capital at start 31 030
(5 400 + 5 500 + 6 000 + 10 000 + 80 – 450 + 7 500 – 3 000)
Add profit for the year 17 500
Less drawings (20 000) 28 530
Number 3 Herman Class
Cash A/c

$ $
Cash sales 83 425 Bank 31 550
Drawings 11 000
Purchases 9 131
General expense 31 536
Bal c/d 208
83 425 83 425

Sales Ledger control A/c

$ $
Bal b/d - Discount allowed 177
Credit sales 10 802 Receipts 8 722
Bad debts 135
Bal c/d 1 768
10 802 10 802

Purchases Ledger control A/c

$ $
Payment 32 471 Bal b/d -
Discount received 308
Bal c/d 2 796 Credit purchases 35 575
35 575 35 575
(a) Income statement for the year ended 31 December 2006
$ $
Revenue (83 425 + 10 802) 94 227
Less : cost of sales
Opening inventory -
Purchases (35 575 + 9 131) 44 706
Less drawing of goods (1 670)
Less Closing inventory (5 430)
Cost of sales (37 606)
Gross profit 56 621
Add discount received 308
Gross income 56 929
Less Expenses
General expenses (12 672 + 31 536 – 37) 44 171
Discount allowed 177
Bad debts 135
Interest on loan ($50 x 5 months) – July to November 250
Depreciation on Vehicles (10 % x 14 000) 1 400
Depreciation on equipment (10 % x 18 600) 1 860
Total expenses (47 993)
Profit for the year 8 936
(a) Statement of financial position as at 30 November 2009
Cost $ Acc dep $ NBV $
Non-current Assets
Equipment 18 600 1 860 16 740
Vehicles 14 000 1 400 12 600
29 340
Current Assets:
Inventory 5 430
Trade receivables 1 768
Other receivables: General expense prepaid 37
Cash and cash equivalent – Bank 279
Cash 208
7 722
Current liabilities
Trade payables 2 796
Loan ($500 x 12 months) 6 000 (8 796)
Net current liabilities (1 074)
Total assets less current liabilities 28 266
Non-current liabilities
Loan (24 000 – 2 500 – ($500 x 12 mths) (15 500)
Net Assets 12 766
Financed by:
Capital at start (14 000 + 6 000) 20 000
Add profit for the year 8 936
Less drawings (3 500 + 11 000 + 1 670) (16 170) 12 766
Question 4: Tan Boon

Bank A/c
$ $
Bal b/d 90 000 Non-current assets 10 000
Receipts from 593 000 Admin expenses 68 500
customers
Distribution 55 500
expenses
Payment to suppliers 515 000
Drawings 19 000
Bal c/d 15 000
683 000 683 000

Sales Ledger control A/c

$ $
Bal b/d - Bal c/d 62 000
Credit sales 655 000 Receipts 593 000
From income
statement)
655 000 655 000

Purchases Ledger control A/c

$ $
Payment 515 000 Bal b/d -
Bal c/d 24 500 Credit purchases 539 500
539 500 539 500
Income statement for the year ended 30 September 2007

$ $
Revenue (196 500 + 458 500) 655 000
Less : cost of sales
Opening inventory 25 000
Purchases (458 500 + 106 000 – 25 000) 539 500
Less Closing inventory (106 000 )
Cost of sales (65 500 x 7) (458 500)
Average inventory = (25 000 + 106 000) ÷ 2 = 65 500
Gross profit Margin 30 % (3/10) - Markup = 3/7 ( 458 500 x 3/7) 196 500
Less Expenses
Depreciation (40 000 + 10 000) 10 % 5 000
Admin expense 68 500
Distribution exp 55 500
Repairs 2 000
Total expenses 131 000
Profit for the year 65 500

(a) Statement of financial position as at 31 October 1993

$ $ $
Non-current Assets 50 000 5 000 45 000

Current Assets:
Inventory 106 000
Trade receivables 62 000
Cash and cash equivalent – Bank 15 000
183 000
Current liabilities
Trade payables 24 500
Other payables: Repairs owing 2 000 (26 500)
Working capital 156 500
201 500
Financed by:
Capital at start (40 000 + 25 000 + 90 000) 155 000
Add profit for the year 65 500
Less drawings (19 000) 201 500
Number 5 Mike Thompson

Sales Ledger control A/c

$ $
Bal b/d 32 900 Receipts 220 150
(210 500 + 7 150 + 2 500)
Credit sales 226 450 Bal c/d 39 200
259 350 259 350

Purchases Ledger control A/c

$ $
Payment –Bank 145 670 Bal b/d 17 700
Payment cash 7 150
Bal c/d 27 300 Credit purchases 162 420
180 120 180 120

(a) Income statement for the year ended 31 December 2011

$ $
Revenue ( 226 450
Less : cost of sales
Opening inventory 21 000
Purchases ( 162 420
Less Closing inventory (29 650)
Cost of sales 153 770
Gross profit 72 680
Less Expenses
Motor expense 14 400
Rent and rates (9 100 + 240 +180) 9 520
General expenses 1 810
Salaries 22 750
Interest on loan (16 % x $10 000 x 6/12) 800
Depreciation vehicle 3 375
Depreciation fittings 2 560
Total expenses (55 215)
Loss for the year 17 465
Calculation of annual depreciation for vehicle

Dep 30 June 2009 = 25 % x 18 000 = 4 500

Dep 30 June 2009 = 25 % x (18 000 – 4 500) = 3 375

NBV at 30 June 2009 = 18 000 – 4 500 = 13 500

Acc dep at 30 June 2010 = 4 500 + 3 375 = 7 875

Calculation annual depreciation for fittings

Dep 30 June 2008 = 10 % x 12 000 = 1 200

Dep 30 June 2009 = 10 % x 12 000 = 1 200
Dep 30 June 2010 = 10 % x 12 000 + 10 % x 13 600 = 2 560

NBV at 30June 2009 = 12 000 – 1200 – 1200 = 9 600

Acc dep at 30 June 2010 = 1200 + 1200 + 2 560 = 4 960

(a) Statement of financial position as at 30 April 2010

Cost ($) Acc dep ($) NBV ($)
Non-current Assets
Vehicles 18 000 7 875 10 125
Fittings (cost = 12 000 + 13 600) 25 600 4 960 20 640
30 765
Current Assets:
Inventory 29 650
Trade receivables 39 200
68 850
Current liabilities
Trade payables 27 300
Other payables : Rent owing 240
Interest owing 800
Bank overdraft 2 330 (30 670)
Net current assets 38 180
Total assets less current liabilities 68 945
Non-current liabilities
Loan (10 000)
58 945
Financed by:
Capital at start 47 280
Add capital introduced 5 000
Add profit for the year 17 465
Less drawings (8 300 + 2 500) (10 800) 58 945
Calculation of capital at start (1 July 2009\30 June 2009

$
NBV of vehicle at 1 July 2009\30 June 2009 13 500
NBV of fittings at 1 July 2009\30 June 2009 9 600
Inventory 21 000
Trade receivables 32 900
Rent prepaid 180
Less trade payables (17 700)
Less Bank overdraft (12 200)
47 280
Question 6: Salman
b) Revenue $63 680; Purchases $41 085; Cost of sales $39 800; Gross profit $23 880;Drawing of goods
$755; Cash stolen $2190; Total expenses $20 220; Profit for the year $3 660
c) Total NBV of NCA $17 505; Total CA $9 550; Total CL $4560; Capital $26 290;Drawings $7455

Sales Ledger control A/c

$ $
Bal b/d 2 640 Receipts 27 450
Credit sales 27 930 Bal c/d 3 120
30 570 30 570

Purchases Ledger control A/c

$ $
Payment –Bank 39 670 Bal b/d 1 980

Bal c/d 1 295 Credit purchases 38 985

40 965 40 965

(a) Income statement for the year ended 30April 2011

$ $
Revenue (27 930 + 35 750) 63 680
Less : cost of sales
Opening inventory 4 740
Purchases (38 985 + 2 100) 41 085
Less drawings of goods (39 800 + 5 270 – 41 085 – 4 740) (755)
Less Closing inventory (5 270
Cost of sales (63 680 – 23 880) (39 800)
Gross profit (3/8 x 63 680) 23 880
Mark-up = 60 % = 3/5, therefore margin = 3/8
Less Expenses
Cash stolen 2 190
Wages 6 250
Rent and rates (7 300 – 535 – 470) 6 295
General expenses 520
Loss on disposal (1 800 – 2 420) 620
Depreciation Equipment (3 720 – 2 975) 745
Depreciation vehicles 3 600
Total expenses (20 220)
Loss for the year 3 660
 Vehicle A/c at
NBV
Bal b/d 20 550 Disposal 2 420
Acquisition - Depreciation 3 600
Bal c/d 14 530
20 550 20 550

Disposal A/c
Vehicle at NBV 2 420 Bank 1 800
Income statement (loss) 620
2 420 2 420

Cash A/c

$ $
Bal b/ 340 Gen expenses 520
Cash sales 35 750 Purchases 2 100
Drawings 6 700
Bank 23 890
Cash stolen 2 190
Bal c/d 690
36 090 36 090

(a) Statement of financial position as at 30 April 2011

$ $ $
Non-current Assets
Equipment 2 975
Vehicles 14 530
17 505
Current Assets:
Inventory 5 270
Trade receivables 3 120
Other receivables 470
Cash 690
9 550
Current liabilities
Trade payables 1 295
Bank overdraft 3 265 (4 560
Net current assets 4 990
Total assets less current liabilities 22 495
Financed by:
Capital at start 26 290
(340 + 3720 + 4740 – 535 – 1980 + 2640 + 20 550 – 3185)
Add profit for the year 3 660
Less drawings (6 700 + 755) (7 455) 22 495
Question 7: Jack Bowman

Sales Ledger control A/c

$ $
Bal b/d 8 400 Receipts 122 300

Credit sales 124 500 Bad debts

Bal c/d 10 600
132 900 132 900

(a) Income statement for the year ended 31 December 2011

$ $
Revenue (108 000 + 32 400) 140 400
Less : cost of sales
Opening inventory 8 300
Purchases (108 000 + 9700 – 8 300) 109 400
Less Closing inventory (9 700)
Cost of sales (108 000)
Average inventory = (8 300 + 9 700) ÷ 2 = 9 000
Rate of inventory = 12 : → Cost of sales ÷ Average inventory = 12
Cost of sales ÷ 9 000 = 12 → Cost of sales = 108 000
Gross profit (30 % x 108 000) 32 400
Less Expenses
Expenses (9 480 + 1 122 – 440 + 390) 10 552
Depreciation (18 360 – 10 552) 7 808
Total expenses (32 400 – 14 040) (18 360)
Loss for the year (10 % x 140 400) 14 040

Statement of financial position as at 31 December 2011

$ $ $
Non-current Assets (40 000 – 7 808) 32 192
Current Assets:
Inventory 9 700
Trade receivables 10 600
Cash and cash equivalent (26 400 – 9 700 – 10 600) 6 100
(13 200 x 2) 26 400
Current liabilities
Trade payables 12 810
Other payables : expenses owing 390 (13 200)
Working capital 13 200
Net Assets 45 392
Financed by:
Capital at start 35 000
Add Profit for the year 14 040
Less Drawings (3 648) 45 392
Number 8 Shaista

Purchases Ledger control A/c

$ $
Payment 45 000 Bal b/d 12 000
Discount received 1 000
Bal c/d 15 500 Credit purchases 49 500
(14 000 + 1 500)
61 500 61 500

Total purchase = 49 500

Sales Ledger control A/c

$ $
Bal b/d 13 300 Discount allowed 1 200
Credit sales 60 750 Receipts from 58 150
customers for the year
ended 31 May 2007
(58 000 – 250 + 400)
Bad debts 1 100
Bal c/d 13 600
74 050 74 050

Total sales = 60 750 + 2 100 = 62 850

b)Total sales is divided as follows:

 Sales revenue on sales to staff = 2 100

 Sales revenue from outdated inventory = 1 290 (6 % x 20 000) x 107.5 %
 Remaining sales revenue = 59 460 (62 850 – 2 100 – 1 290)

Sales to staff are at a mark-up of 5 % (5/100)

Margin = 5/105
Gross profit on sales to staff = 100 (5/105 x 2 100)
Sales to staff at cost price= 2 000 (2 100 – 100) or (2 100 ÷ 105 x 100)

Sales of outdated inventory are at a mark-up of 7.5 %

Margin = 7.5/107.5
Gross profit on sales of outdated inventory = 90 7.5/107.5 x 1 290
Sales of outdated inventory at cost price = 1 200 (1 290 – 90) or (1 290 ÷107.5 x 100)

Sales of remaining inventory is at the usual mark-up of 20 %

Margin = 20/120
Gross profit on remaining sales revenue = 9 910 (20/120 x 59 460)
Remaining sales at cost price = 49 550 (59 460 ÷ 120 x 100)
Total cost of sales = 52 750 (2 000 + 1 200 + 49 550)
Total gross profit = 10 100 (100 + 90 + 9 910)

c)

Income statement for the month ended 31 October 2011

$
Revenue 62 850
Less : cost of sales
Opening inventory 20 000
Purchases 49 500
Less Goods Stolen (52 750 + 16 500 – 49 500 – 20 000) (250)
Less Closing inventory (16 500)
Cost of sales () (52 750)
Gross profit 10 100

Number 9 Bryan Cole

Cash A/c

$ $
Bal b/d 238 Bank 102 250
Cash sales 120 698 Wages 4 380
Rent 2 400
Drawings 8 460
Cash stolen 3 120
(balancing figure)
Bal c/d 326
120 936 120 936

Sales Ledger control A/c

$ $
Bal b/d 126 Receipts 6 479
Credit sales 6 564 Bal c/d 211
6 690 6 690

Purchases Ledger control A/c

$ $
Payment 34 107 Bal b/d 1 477

Bal c/d 1 086 Credit purchases 33 716

35 193 35 193
Income statement for the year ended 30 September 2009

$ $
Revenue (6 564 + 120 698) 127 262
Less : cost of sales
Opening inventory 984
Purchases (33 716 + 1 328) 35 044
Less Closing inventory (1 358)
Cost of sales (34 670)
Gross profit 92 592
Insurance receivable 3 000
95 592
Less Expenses
Wages (23 761 + 4 380) 28 141
General expenses 37 328
Rent 2 400
Depreciation equipment (9 700 + 2 600 – 11 000) 1 300
Depreciation vehicle ( 3 000 – 1 000) 2 000
Cash stolen 3 120
Total expenses (74 289)
Profit for the year 21 303

(b) Statement of financial position as at 30 April 2010

$ $ $
Non-current Assets
Equipment 11 000
Vehicle 1 000
12 000
Current Assets:
Inventory 1 358
Trade receivables 211
Other receivables: Insurance receivable owing 3 000
Bank 899
Cash 326
5 794
Current liabilities
Trade payables (1 086)
Net current assets 4 708
Total assets less current liabilities 16 708

Financed by:
Capital at start 14 335
(1 764 + 9 700 + 3 000 + 984 + 126 – 1 477 + 238)
Add profit for the year 21 303
Less drawings (10 470 + 8 460) (18 930) 16 708
Number 10 Gabriel

a)

Prepare a cash account to obtain cash sales ( there are no credit sales, hence cash sales =total
sales)

Cash A/c

$ $
Bal b/d - Bank 273 200
Cash sales 301 660 General expenses 1 100
Wages 12 000
Drawings (1 200 x12) 14 400
Petrol (80 x 12) 960
Bal c/d -
301 660 301 660

b)

Income statement for the year ended 30 September 2007

$ $
Revenue 301 660
Less : cost of sales
Opening inventory 22 000
Purchases (182 600 + 21 200) 203 800
Less Closing inventory (31 250)
Cost of sales (194 550)
Gross profit 107 110
Less Expenses
Electricity 2 400
Van maintenance 250
General expenses (2 620 + 1 100) 3 720
Wages 12 000
Petrol ($80 x 12 months) 960
Bad debts (5 010 – 3 040) 1 970
Depreciation (25 % x 6 800) 1 700
Total expenses (23 000)
Profit for the year 84 110
Number 11 Jasper

a)

Purchases Ledger control A/c

$ $
Payment 228 000 Bal b/d 29 200
Bal c/d 32 200 Credit purchases 231 000
260 200 260 200

Calculation of sales and sales

Opening inventory 24 400

Add purchases 231 000
Less closing inventory (30 600)
Cost of sales 224 800
Gross profit 168 600 75 % x 224 800
Sales 393 400 224 800 + 168 600

Machinery at NBV

$ $
Bal b/d 206 400 Disposal (NBV) 5 600
Bank 30 400 Depreciation 15 200
Bal c/d 216 000

236 800 236 800

Sales Ledger control A/c

$ $
Bal b/d 46 400 Receipts 424 000
Credit sales 393 400 Bal c/d (balancing 15 800
figure)
439 800 439 800
b)

Income statement for the year ended 30 April 2010

$ $
Revenue 393 400
Less : cost of sales
Opening inventory 24 400
Purchases 231 000
Less Closing inventory (30 600)
Cost of sales (224 800)
Gross profit 168 600
Less Expenses
Rent (24 200 – 6 200) 18 000
Insurance (14 200 – 3 400) 10 800
Wages (104 200 – 28 000) 76 200
Postage 800
Electricity 8 400
Sundries 4 200
Depreciation machinery 15 200
Loss on disposal (1 000 – 5 600) 4 600
Total expenses (138 200)
Profit for the year 30 400

Calculation of Opening bank balance

Summary Bank Account

$ $
Bal b/d balancing figure) 15 000
Total receipts 424 000 Total payments (30 400 + 414 400
228 000 + 24 200 + 14
200 +104 200 + 800 + 8
400 + 4 200)
Bal c/d 5 400
429 400 429 400
(c) Statement of financial position as at 30 April 2010
$ $ $
Non-current Assets
Machinery 216 000
Current Assets:
Inventory 30 600
Trade receivables 15 800
Other receivables: Rent prepaid 6 200
Insurance prepaid 3 400
56 000
Current liabilities
Trade payables 32 200
Bank overdraft 5 400 (37 600)
Net current assets 18 400
Total assets less current liabilities 234 400
Financed by:
Capital at start 233 000
(46 400 + 24 400 – 29 200 + 206 400 – 15 000)
Add profit for the year 30 400
Less drawings (28 000 + 1 000) (29 000) 234 400
12 James Bond
Bank A/c

$ $
Bal b/d 30 000 Suppliers 103 000
Receipts from 118 600 Administrative 13 700
customers expenses
Sales and 11 100
distribution cost
Drawings 5 800
Bal c/d 15 000
148 600 148 600

Sales Ledger control A/c

$ $
Bal b/d - Receipts 118 600
Credit sales 131 000 Bal c/d 12 400
131 000 131 000

Average inventory = (5 000 + 21 200) ÷ 2 = 13 100

Rate of inventory turn = Cost of sales ÷ Average inventory
7 = C.O.S ÷ 13 100
Cost of sales = 13 100 x 7 = 91 700
Gross profit margin = 30 % = 3/10, therefore mark-up = 3/7
Gross profit = 3/7 x 91 700 = 39 300
Revenue (all on credit) = 91 700 + 39 300 = 131 000

Purchases Ledger control A/c

$ $
Payment 103 000 Bal b/d -
Bal c/d 4 900 Credit purchases 107 900
107 900 107 900

Cost of sales = Op inv + Purchases – Clo inv

91 700 = 5 000 + Purchases – 21 200
Purchases (all on credit) = 107 900
Income statement for the year ended 31 March 2015

$ $
Revenue 131 000
Less : cost of sales
Opening inventory 5 000
Purchases 107 900
Less Closing inventory (21 200)
Cost of sales (91 700)
Gross profit 39 300
Less Expenses
Administrative expenses 13 700
Sales and distribution 11 100
Depreciation (10 % x 8 000) 800 (25 600)
Profit for the year 13 700

(a) Statement of financial position as at 30 April 2010

$ $ $
Non-current Assets 8 000 800 7 200

Current Assets:
Inventory 21 200
Trade receivables 12 400
Bank 15 000
48 600
Current liabilities
Trade payables (4 900)
Net current assets 43 700
Total assets less current liabilities 50 900
Financed by:
Capital at start (8 000 + 5 000 + 30 000) 43 000
Add profit for the year 13 700
Less drawings ( (5 800) 50 900
Number 13 Leong Boon Kiat

Equipment at NBV

$ $
Bal b/d 7 800
Bank 5 000 Depreciation 2 800
Bal c/d 10 000
12 800 12 800

Cash A/c
$ $
Bal b/d - Bank 152 000
Cash sales 166 200 Purchases 2 450
(166 800 – 600)
Total sales – credit
sales)
Drawings 8 000
Cash stolen 3 750
Bal c/d -
166 800 166 800

Sales Ledger control A/c

$ $
Bal b/d 1 250 Bal c/d (balancing 1 850
figure)
Credit sales 600
1 850 1 850

Purchases Ledger control A/c

$ $
Payment 122 450 Bal b/d 6 000
Bal c/d 7 200 Credit purchases 123 650
129 650 129 650
Income statement for the year ended 30 September 2007

$ $
Revenue (125 100 + 41 700) 166 800
Less : cost of sales
Opening inventory 10 000
Purchases (123 650 + 2 450) 126 100
Less Closing inventory (11 000)
Cost of sales (125 100)
Gross profit Margin 25 % (1/4) - Markup = 1/3 41 700
(1/3 x 125 100)
Less Expenses
Rates (5 100 + 400 - 600) 4 900
Interest on loan (10 % x 15 000) 1 500
Depreciation of equipment (7 800 + 5 000 – 10 000) 2 800
Depreciation machinery (20 000 – 0) ÷ 20 years 1 000
Cash stolen 3 750
Total expenses (13 950)
Profit for the year 27 750

(a) Statement of financial position as at 30 September 2007

$ $ $
Non-current Assets
Machinery (20 000 – 1 000) 19 000
Equipment 10 000
29 000
Current Assets:
Inventory 11 000
Trade receivables 1 850
Other receivables: Rates prepaid 600
Bank 33 200
46 650
Current liabilities
Trade payables 7 200
Other payables: Interest owing (1 500 – 750) 750 (7 950)
Net current assets 38 700
Total assets less current liabilities 67 700
Non-current liabilities
Loan (15 000)
Net Assets 52 700
Financed by:
Capital at start 32 950
(19 500 + 1 250 - 6 000 + 10 000 + 400 + 7 800)
Add profit for the year 27 750
Less drawings (8 000) 52 700
14 Fred

15 Sadil

16 Rania
Sales Ledger control A/c
$ $
Bal b/d 9 800 Receipts 77 600
Credit sales 78 950 Discount allowed 3 200
Bal c/d 7 950
88 750 88 750

Cash sales = 19 850 + (150 x 52 weeks) + (450 x 12) = 33 050

Total sales = 78 950 + 33 050 = 112 000
Purchases Ledger control A/c

$ $
Payment 48 000 Bal b/d 4 300
Discount received 2 500
Bal c/d 4 800 Credit purchases 51 000
55 300 55 300

Total purchase = 51 000

Income statement for the year ended 30 April 2009

$ $
Revenue 112 000
Less : cost of sales
Opening inventory 8 250
Purchases 51 000
Add carriage inwards (1/3 x 17 700) 5 900
Less Closing inventory (5 150)
Cost of sales (60 000)
Gross profit 52 000
Add discount received 2 500
Add profit on disposal (Sales proceed – NBV) = (1 350 – 1 200) 250
54 650
Less Expenses
Discount allowed 3 200
 Rent (5 500 + 500) 6 000
Carriage outwards (2/3 17 700) 11 800
Interest on loan (8 % x 10 000) 800
Staff wages (150 x 52 weeks) 7 800
Operating expenses (450 x 12) + 7 250 12 650
Depreciation (15 000 – 1 200) – 12 000 1 800
Total expenses (44 050
Profit for the year 10 600

(a) Statement of financial position as at 30 September 2007

$ $ $
Non-current Assets
Equipment 12 000
Current Assets:
Inventory 5 150
Trade receivables 7 950
13 100
Current liabilities
Trade payables 4 800
Other payables: Interest owing 800
Rent owing 500
Bank overdraft 2 400 (8 500)
Net current assets 4 600
Total assets less current liabilities 16 600
Non-current liabilities
Loan (10 000)
Net Assets 6 600
Financed by:
Capital at start 21 000
Add profit for the year 10 600
Less drawings (25 000) 6 600