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Financial Accounting: Income Statement, Statement of Financial Position, and Cash Flow Statement

   

Added on  2023-06-17

7 Pages914 Words293 Views
Financial accounting

TABLE OF CONTENTS
QUESTION 1...................................................................................................................................3
Income statement........................................................................................................................3
Statement of financial position...................................................................................................4
CASH FLOW STATEMENT..........................................................................................................5
Question 2a.................................................................................................................................5
Question 2b.................................................................................................................................5
REFERENCES................................................................................................................................7

QUESTION 1
Income statement
Particulars Details (£) Amount (£)
Sales Revenue 164000
Less Cost of sales
Opening inventory 6000
Add Purchases 100000
Less closing inventory Less
goods taken out by owner for
personal use (4400 – 500)
(3900) -102100
Gross Profit 61900
Add Discount received 500
62400
Operating expenses:
Discount allowed 920
Carriage outward 1500
Rents and rates excluding
prepaid rent
9300 – 1300 = 8000
Heating and lighting 4500
Salaries and wages 37000
Motor running cost including
closing outstanding
630 + 90 = 720
Depreciation (Delivery van) 9000 – 3500 = 5500*25% =
1375
Depreciation (shop fittings) 8500*20% = 1700
Less Total operating expenses -55715
Net profit 6685

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