Financial Statements Analysis Example

This solved assignment presents a detailed example of financial statement analysis. It outlines various accounts like Bank Loan, Share Capital, Dividends Paid, Retained Earnings, Sales, Cost of Sales, and numerous expenses. The data is presented with opening balances and closing balances, allowing for an understanding of the company's financial performance over a specific period.

ACCOUNTING WORKING PAPERS AND REPORT TEMPLATES
CHART OF ACCOUNTS
Ac. No. Account AL/IE C/NC
100 Cheque Account – Bendigo Bank Asset Current
105 Petty Cash Asset Current
110 Accounts Receivable Asset Current
120 Merchandise Inventory Asset Current
130 Prepaid Insurance Asset Current
140 Prepaid Rates & Taxes Asset Current
150 GST Paid (outlays) Asset Current
160 Buildings & Improvement (cost) Asset Non-current
161 Accumulated Depreciated - Bldgs & Imp Liability Non-current
170 Motor Vehicles (Cost) Asset Non-current
171 Accumulated Depreciation – Motor Vehicles Liability Non-current
180 Store Equipment (Cost) Asset Non-current
181 Accumulated Depreciation – Store Equip Liability Non-current
200 Accounts Payable Liability Current
210 GST Collected Liability Current
220 PAYG Withholding Payable Liability Current
230 Superannuation Payable Liability Current
240 Wages & Salaries Expense Current
280 Bank Loan Liability Non-current
310 Share Capital Equity Non-current
315 Dividends Paid Equity Non-current
320 Retained Earnings Equity Non-current
400 Sales Income Current
420 Discounts Received Income Current
430 Freight Collected Income Current
500 Cost of Sales Expense Current
520 Freight Expense Expense Current
600 Advertising Expense Current
610 BankCharges Expense Current
615 Cleaning Expense Current
620 Depreciation Expense Current
625 Electricity Expense Current
630 Insurance Expense Current
635 Interest Expense Expense Current
640 Motor Vehicle Expenses Expense Current
650 Postage & Stationery Expense Current
655 Rates Expense Current
660 Repairs & Maintenance Expense Current
670 Staff Amenities Expense Current
675 Superannuation Expense Current
1

680 Telephone Expense Current
685 Wages & Salaries Expense Current
2

GENERAL JOURNAL
Date Description Post Ref Debit Credit
Depreciation 9,086
Acc. Depreciation 9,086
3

SALES JOURNAL
Date Inv
No
Account Terms Sales GST
Collected
Accounts
Receivable
Cost of Sales Dr
Inventory Cr
Sales 69,020 1,750 70 9,337 50 31,160 Dr
12,200 Cr
4

PURCHASES JOURNAL
Date Inv.
No
Account Terms Inventory GST (Paid)
(Outlays)
Freight
Paid
Accounts
Payable
Purchases 12,200 921 20 324 11,454
5

CASH PAYMENTS JOURNAL
Date Account
Post
Ref
Chq
No
Debits Credits
Accounts
Payable
GST Paid
(Outlays) Other
Cash at
Bank
Discount
Received
GST Paid
(Outlays)
Wages &
Salaries
6,600
Freight
Expense
149
Advertising 480
Bank
Charges
42 40
Cleaning 850
Electricity 380 50
Insurance 1,864
Interest
Expense
816
Motor
Vehicle
Expenses
102
Postage &
Stationery
2,200
Rates 75
Repairs &
Maintenanc
e
68 60
6

Staff
Amenities
612
Superannua
tion
426 50
Telephone 380 50
Interest
Expenses
15,750
GST paid 921 20
Discount
received
392 30
7

CASH RECEIPTS JOURNAL
Date Accounts
Post
Ref
Debits Credits
Cash at
Bank
Cost of Sales
Sales
Accounts
Receivable
GST
Collected
Other
8

PETTY CASH JOURNAL
Date Details Post
Ref
Receipts Payments Balance GST Paid
(Outlays)
Postage &
Stationery
Staff
Amenities
Other
Bal b/d 100
9

10

INVENTORYSUBSIDIARY LEDGER
Name: Armour Cricket Pads Acct Code: ACP
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
ACP 18 50 900
Name: Blaster Cricket Bat Acct Code: BCB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
BCB 23 60 1,380
Name: Blaze Soccer Ball Acct Code: BSB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
BSB 11 25 275
11

INVENTORYSUBSIDIARY LEDGER
Name: Diablo Golf Balls (Box of 12) Acct Code: DGB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
DGB 32 15 480
Name: Gifford Netball Acct Code: GNB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
GNB 12 20 240
Name: Herrin Football Acct Code: HFB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
HFB 17 75 1,275
12

INVENTORYSUBSIDIARY LEDGER
Name: Jordan Basketball Acct Code: JBB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
JBB 15 40 600
Name: Marsh Cricket ball Acct Code:MCB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
MCB 40 5 200
Name: Netball Stand Acct Code:NBS
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
NBS 2 40 80
13

14

INVENTORYSUBSIDIARY LEDGER
Name: Slammer Blackboard Acct Code: SBB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
SBB 4 60 240
Name: Strike Football Boots Acct Code:SFB
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
SFB 29 60 2,030
Name: Slogger Golf Set Acct Code:SGS
Date Explanation Purchases Cost of Sales Balance
Units Cost Total Units Cost Total Units Cost Total
SGS 9 500 4,500
15

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Name: Accounts receivable Acct Code:
Date Explanation
Post.
Ref. Debit Credit Balance
Accounts
receivable
9,337.50 0 9,337.50
16

ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Name: Accounts payable Acct Code:
Date Explanation
Post.
Ref. Debit Credit Balance
Accounts payable 0 11,454 11,454
17

GENERAL LEDGER
Name: Wages & Salaries Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Wages &
Salaries
6800 Wages &
Salaries
200
P/L 6600
Name: Freight Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Freight 324 Freight 175
P/L 149
Name: Bank Charges Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Advertising 42 4
0
P/L 42 40
18

GENERAL LEDGER
Name: Advertising Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Advertising 480 P/L 480
Name: Cleaning Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Clening 850 P/L 850
Name: Electricity Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Electricity 380 50 P/L 380 50
19

GENERAL LEDGER
Name: Insurance Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Insurance 1864 P/L 1864
Name: Interest Expense Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Interest
Expense
15,750 P/L 15750
Name: Motor Vehicle Expenses Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bank 816 P/L 816
20

GENERAL LEDGER
Name: Postage & Stationery Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bank 102 P/L 102
Name: Rates Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bank 2200 P/L 2200
Name: Repairs & Maintenance Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bank 75 P/L 75
21

GENERAL LEDGER
Name: Staff Amenities Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bank 68.60 P/L 68.60
Name: Superannuation Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bank 612 P/L 612
Name: Telephone Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bank 426.50 P/L 426.50
22

GENERAL LEDGER
Name: Discounts Received Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
P/L 392.30 Bank 392.30
Name: Prepaid Insurance Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 3,728 P/L
Name: Prepaid Rates & Taxes Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 4,400
23

GENERAL LEDGER
Name: Buildings & Improvement (cost) Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 980,000
Name: Accumulated Depreciated - Bldgs & Imp Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 58,800
Name: Motor Vehicles (Cost) Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 58,800
24

GENERAL LEDGER
Name: Accumulated Depreciation – Motor Vehicles Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 5,640
Name: Store Equipment (Cost) Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 26,100
Name: Accumulated Depreciation – Store Equip Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 11,700
25

GENERAL LEDGER
Name: PAYG Withholding Payable Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 320
Name: Superannuation Payable Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 144
Name: Bank Loan Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 620,000
26

GENERAL LEDGER
Name: Share Capital Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Bal b/d 360,000
Name: Depreciation Acc No:
Date Details
Post.
Ref. Debit Date Details
Post.
Ref. Credit
Acc. Depn 9,086 P/L 9,086
27

28
REPORTS

SCHEDULES OF SUBSIDIARY LEDGERS
Schedule of Accounts Receivable
as at 30November 2017
Acc. Code Account Amount
110 Acounts Receivable *9,337.50
*In the given case study, once the the amount is written as 9,327.50.
Schedule of Accounts Payable
as at 30 November 2017
Acc. Code Account Amount
200 Accounts Payable 11,454
Schedule of Inventory on Hand
as at 30 November 2017
Acc. Code Account Amount
120 Merchandise Inventory 12,200
29

BANK RECONCILIATON STATEMENT
as at 30 November 2017
Balance as per bank statement $
Add Not Applicable as the
BRS has already been
prepared for the
given period.
Less
Balance as per Cheque Account(100)
30

WORKSHEET
Worksheet for period ended 30 November 2017
Ac. No. Account Debit ($) Credit ($) IS/BS
100 Cheque Account – Bendigo Bank 26,376.30 0.00 Balance Sheet
105 Petty Cash 100.00 0.00 Balance Sheet
110 Accounts Receivable 9,337.50 0.00 Balance Sheet
120 Merchandise Inventory 12,200.00 0.00 Balance Sheet
130 Prepaid Insurance 3,728.00 0.00 Balance Sheet
140 Prepaid Rates & Taxes 4,400.00 0.00 Balance Sheet
150 GST Paid (outlays) 921.20 0.00 Balance Sheet
160 Buildings & Improvement (cost) 980,000.00 0.00 Balance Sheet
161 Accumulated Depreciated - Bldgs & Imp 0.00 58,800.00 Balance Sheet
170 Motor Vehicles (Cost) 18,800.00 0.00 Balance Sheet
171 Accumulated Depreciation – Motor Vehicles 0.00 5,640.00 Balance Sheet
180 Store Equipment (Cost) 26,100.00 0.00 Balance Sheet
181 Accumulated Depreciation – Store Equip 0.00 11,700.00 Balance Sheet
200 Accounts Payable 0.00 11,454.00 Balance Sheet
210 GST Collected 0.00 1,750.70 Balance Sheet
220 PAYG Withholding Payable 0.00 320.00 Balance Sheet
230 Superannuation Payable 0.00 144.00 Balance Sheet
240 Wages & Salaries 0.00 200.00 Statement of Profit & Loss
280 Bank Loan 0.00 620,000.00 Balance Sheet
310 Share Capital 0.00 360,000.00 Balance Sheet
315 Dividends Paid 17,000.00 0.00 Balance Sheet
320 Retained Earnings 0.00 30,404.00 Balance Sheet
400 Sales 0.00 69,020.00 Statement of Profit & Loss
420 Discounts Received 0.00 392.30 Statement of Profit & Loss
430 Freight Collected 0.00 175.00 Statement of Profit & Loss
500 Cost of Sales 31,160.00 0.00 Statement of Profit & Loss
31

520 Freight Expense 324.00 0.00 Statement of Profit & Loss
600 Advertising 480.00 0.00 Statement of Profit & Loss
610 BankCharges 42.40 0.00 Statement of Profit & Loss
615 Cleaning 850.00 0.00 Statement of Profit & Loss
620 Depreciation 9,086.00 0.00 Statement of Profit & Loss
625 Electricity 380.50 0.00 Statement of Profit & Loss
630 Insurance 1,864.00 0.00 Statement of Profit & Loss
635 Interest Expense 15,750.00 0.00 Statement of Profit & Loss
640 Motor Vehicle Expenses 816.00 0.00 Statement of Profit & Loss
650 Postage & Stationery 102.00 0.00 Statement of Profit & Loss
655 Rates 2,200.00 0.00 Statement of Profit & Loss
660 Repairs & Maintenance 75.00 0.00 Statement of Profit & Loss
670 Staff Amenities 68.60 0.00 Statement of Profit & Loss
675 Superannuation 612.00 0.00 Statement of Profit & Loss
680 Telephone 426.50 0.00 Statement of Profit & Loss
685 Wages & Salaries 6,800.00 0.00 Statement of Profit & Loss
Total 1,170,000.00
1,170,000.0
0
32

Statement of Profit or Loss
for the period 1 July to 30 November 2017
Particulars Amount $
INCOME
Sales 69,020.00
Cost of Goods Sold 31,160.00
GROSS PROFIT 37,860.00
Other Income:
Discounts Received 392.30
TOTAL INCOME 38,252.30
EXPENSES
Selling Expenses: 0.00
Administrative Expenses:
Wages & Salaries 6,600.00
Freight 149.00
Advertising 480.00
BankCharges 42.40
Cleaning 850.00
Depreciation 9,086.00
Electricity 380.50
Insurance 1,864.00
Motor Vehicle Expenses 816.00
Postage & Stationery 102.00
Rates 2,200.00
Repairs & Maintenance 75.00
Staff Amenities 68.60
Superannuation 612.00
Telephone 426.50
Finance Expenses:
Interest Expense 15,750.00
TOTAL EXPENSES 39,502.00
NET PROFIT/(LOSS) -1,249.70
33

Statement of Financial Position
as at 30 November 2017
Particulars Amount $
CURRENT ASSETS
Petty Cash 100.00
Cheque Account – Bendigo Bank 26,376.30
Accounts Receivable 9,337.50
Merchandise Inventory 12,200.00
Prepaid Insurance 3,728.00
Prepaid Rates & Taxes 4,400.00
TOTAL CURRENT ASSETS 56,141.80
NON-CURRENT ASSETS
Buildings & Improvement (cost) 980,000.00
Accumulated Depreciated - Bldgs & Imp 58,800.00
Motor Vehicles (Cost) 18,800.00
Accumulated Depreciation – Motor Vehicles 5,640.00
Store Equipment (Cost) 26,100.00
Accumulated Depreciation – Store Equip 11,700.00
TOTAL NON-CURRENT ASSETS 948,760.00
TOTAL ASSETS
1,004,901.8
0
CURRENT LIABILITIES
Accounts Payable 11,454.00
GST Payable 829.50
PAYG Withholding Payable 320.00
Superannuation Payable 144.00
TOTAL CURRENT LIABILITIES 12,747.50
NON-CURRENT LIABILITIES
Bank Loan 620,000.00
TOTAL NON-CURRENT LIABILITIES 620,000.00
TOTAL LIABILITIES 632,747.50
NET ASSETS 372,154.30
EQUITY
Share Capital 360,000.00
Retained Earnings 30,404.00
Dividends Paid 17,000.00
Net Loss -1,249.70
EQUITY 372,154.30
34

Post- Closing Trial Balance
as at 1 December 2017
Ac.
No. Account Debit ($) Credit ($)
100 Cheque Account – Bendigo Bank 26,376.30 0.00
105 Petty Cash 100.00 0.00
110 Accounts Receivable 9,337.50 0.00
120 Merchandise Inventory 12,200.00 0.00
130 Prepaid Insurance 3,728.00 0.00
140 Prepaid Rates & Taxes 4,400.00 0.00
150 GST Paid (outlays) 921.20 0.00
160 Buildings & Improvement (cost) 980,000.00 0.00
161 Accumulated Depreciated - Bldgs & Imp 0.00 58,800.00
170 Motor Vehicles (Cost) 18,800.00 0.00
171
Accumulated Depreciation – Motor
Vehicles 0.00 5,640.00
180 Store Equipment (Cost) 26,100.00 0.00
181 Accumulated Depreciation – Store Equip 0.00 11,700.00
200 Accounts Payable 0.00 11,454.00
210 GST Collected 0.00 1,750.70
220 PAYG Withholding Payable 0.00 320.00
230 Superannuation Payable 0.00 144.00
240 Wages & Salaries 0.00 200.00
280 Bank Loan 0.00 620,000.00
310 Share Capital 0.00 360,000.00
315 Dividends Paid 17,000.00 0.00
320 Retained Earnings 0.00 30,404.00
400 Sales 0.00 69,020.00
420 Discounts Received 0.00 392.30
430 Freight Collected 0.00 175.00
500 Cost of Sales 31,160.00 0.00
520 Freight Expense 324.00 0.00
600 Advertising 480.00 0.00
610 BankCharges 42.40 0.00
615 Cleaning 850.00 0.00
620 Depreciation 9,086.00 0.00
625 Electricity 380.50 0.00
630 Insurance 1,864.00 0.00
635 Interest Expense 15,750.00 0.00
640 Motor Vehicle Expenses 816.00 0.00
650 Postage & Stationery 102.00 0.00
655 Rates 2,200.00 0.00
660 Repairs & Maintenance 75.00 0.00
670 Staff Amenities 68.60 0.00
675 Superannuation 612.00 0.00
680 Telephone [phone]
35