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Financial Accounting: Income Statement, Statement of Financial Position, Inventory Valuation, Receivables and Payables Control Accounts

   

Added on  2023-06-18

12 Pages1463 Words89 Views
FINANCIAL ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

QUESTION 1
a)
Winston Income Statement
For the year ended 31st December 2018
Particulars Details Amount
Sales Revenue 251800
Less Cost of Sales:
Opening stock 84300
Add Purchase less purchase return
(119850 - 850)
119000
Add Carriage inward 1000
Less Closing stock (91600)
(112700)
Gross Profit 139100
Decrease in allowance for receivable 600
Recovered debt 100
Operating profit 139800
Less Operating expense:
Vehicle expense - prepaid expense 5550
(6000 - 450)
Agent commission + closing
outstanding
2518
(1800 + 718)
Wages and Salaries + closing
outstanding
42000
(40000 + 2000)
Electricity + closing electricity
outstanding – opening owing
5200
(4800 + 1200 - 800)
Interest on loan/ payable 12000
Irrecoverable debt 1100
Depreciation on fixtures 10000
(20000* 50%)
1

Depreciation on Vehicle 18500
(74000*25%)
Depreciation on Premises 4000
(400000/100)
Depreciation on Plant 20000
(200000* 10%)
Loss on sale of vehicle 4000
(124868)
Net Profit 14932
Winston Statement of Financial Position
As at 31st December 2018
Particulars Details Amount
Assets
Fixed assets:
Vehicle 80000
Fixtures 40000
Plant & equipment 200000
Premises 400000
Total 720000
Current assets:
Account receivable 25000 + 600 25600
Prepaid vehicle expense 450
Bank 43400
(41000 + 5000 - 2600)
Closing Inventory 91600
Total 161050
Total Assets 881050
Liabilities
2

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