Accounts, Ratios and Financial Viability for J Ltd

Accounts

SECTION A
Particulars Amount
Sales 20000
Less: Cost of goods sold 14700
Opening inventory 2000
Add: Purchases 15200
Less: inventory 2500
Gross Profit 5300
Operating expenses and
incomes
4200
Buildings- accumulated
depreciation 400
520
Add: depriciation120
Machinery- Accumulated
depreciation 500
1000
Add: depreciation 500
Administration costs 400 300
Less: Prepaid administration
expenses 100
Selling expenses 700
Distribution expenses 200
Audit fee 70 90
Add: owed audit fees 20
Bad debt 30
Salaries and wages 900 930
Add: Salaries accrued 30
Directors’ remuneration 300
Debenture’s interest paid
60
80
Add: owed interest 20
Interim ordinary dividend
paid
50
Net profit 1100
Less: taxation 200
Net profit after tax 900
Less: ordinary dividend 27 27
Net profit 873
Liabilities and capital
Salaries accrued 30

Audit fees owed 20
Payables 1000
Unpaid tax 200
£1 Ordinary shares 8000 8027
Unpaid dividend 27
5% Debentures 1600 1620
Add: owed debenture interest 20
Retained profits 1390 2263
Add: profit after tax 873
Total 13160
Assets
Buildings at cost 2400 2280
Less: depreciation 120
Free hold premises at cost 6000
Machinery 3000 2500
Less: depreciation 500
Prepaid administration expenses 100
Inventory 2500
Receivables 1400
cash 50
bank 130
Total 14960
SECTION 2
Question 2
Particulars A B Particulars A B
Opening Inventory 20 40 Sales 450 880
Cost of Sales 220 370 Closing Inventory 30 50
Gross Profit 240 520
480 930 480 930
a) Profitability Ratios:
1) Gross Profit Margin = Gross Profit/ Sales* 100