Esther Hill

Income Statement for the year ended 31 December 2004

Sales
-COGS
Opening inventory
1,400
Purchases
3,000
4,400
-Closing inventory
(1,700)
Cost of goods sold
Gross profit
-Expenses
Expenses( 800+500+150-100)
1,350
Bad debt
100
Doubtful debt (350 * 10%)
35
Depreciation of van
50
Net profit

Esther Hill
Balance Sheet as at 31 December 2004
Non current Assets
van

7,850

2,700
5,150

(1,535)
3,615

1,000
1

-Accumulated depreciation

(50)

Current Assets
Closing inventory
Trade receivables (450-100)
Provision of doubtful debt
Bank
Cash

350
(35)

- Current Liabilities
Trade payables
Expenses Payable
Working capital

(900)
(150)

950

1,700
315
500
30
2,545

(1,050)
1,495
2,445

Owner's Equity
Capital
+ Net profit

1,670
3,615
5,285
(2,840)
2,445

Drawings(200+1,340+1,300)

WORKING

Bal b/d
Credit sales

Trade receivables
300
Bank
2,650
Bal c/d

2,500
450

2,950

2,950

Total sales = ( 2650+5200) = 7,850

Bank

Trade payables
2,500
Bal b/d

800
2

Credit purchases
Bal c/d

2,600

900
3,400

3,400

Total Purchases = (2,600+400 ) = 3,000

Bal b/d
Sales

70
5,200

Cash
Drawings
Purchases
Expenses
Bank
bal c/d

1,340
400
500
3,000
30

5,270

5,270

Beckham
Income Statement for the year ended 31 December 20x4
Sales
-COGS
Opening inventory
Purchases
77,578
- Discount received
(87)
-Closing inventory
Cost of goods sold
Gross profit
-Expenses
Sundry expenses (1560+106)

110,482
8,428
77,491
85,919
(11,280)
74,639
35,843
1,666

Insurance (2,640+420-480-120)
Rent (5,200-400)
Wages and salaries
Depreciation of equipment
Net profit

Beckham
Balance Sheet as at 31 December 20x4
Non current Assets
Equipment ( 8,400+ 4000)
-Accumulated depreciation

2,460
4,800
12,427
2,480

12,400
(2,480)

Current Assets
Closing inventory
Trade receivables
Bank
Cash
Insurance prepaid
- Current Liabilities
Trade payables
Working capital

9,920

11,280
9,900
2,788
80
480
24,528
(6,836)
17,692
27,612

Owner's Equity
Capital
+ Net profit

23,182
12,010
4

(23,833)
12,010

35,192
(7,580)
27,612

Drawings(7,200 + 260 +120)

WORKINGS:

Bal b/d
Credit sales

Trade receivables
7,362
Bank
97,146
Bal c/d
104,508

Total sales = ( 97,146 +13,336) =

Bank
Discount
Bal c/d

104,508
110,482

Trade payables
76,040
Bal b/d
87
Credit purchases
6,836
82,963

Total Purchases = (77,035 -260+803) =

94,608
9,900

77,578

5,928
77,035
82,963