Accounting for Business: Financial Statements Analysis and Ratios

Accounting for
business

Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................4
Question 3........................................................................................................................................6
REFERENCES................................................................................................................................9

Question 1
Particular Amount
Sales 1200
Cost of sales 700
opening inventory 250
LESS: purchases 600
closing inventory 150
Expenses
Rent&rates (30-4+1) 27
Selling expenses (20-2) 18
Advertising(20-3) 17
Insurance(9+1) 10
Energy costs(25+1)_ 26
Audit fee(10+2) 12
Depreciation on vehicle(130-
30)*0.25 25
depreciation on fixture and
fittings(100-60)*0.3 12
Distribution cost 30
Salaries &wages 90
Director remuneration 45
Bad debt 3
Interest on bank loan 8
Debenture interest(10+2) 12
PBT 147
TAX 60
PAT 87
Dividend
Interim 25
Final(400*0.09) 36
retained profit for the year 44
Retained profit B/F 26
Retained profit C/F 90
statement of final position of A plc as of
31/12/2021
NON CURRENT ASSET
PREMISES 650