JULES VERNES, TRADER

INCOME STATEMENT FOR THE YEAR ENDED 31.12.10

Revenue 145 000
LESS Sales returns/return inwards/returns on sales (5 000 )
Net Sales/Turnover 140 000
LESS Cost of sales:
Inventory (01.01.10) 12 000
ADD Purchases 75 000
LESS Purchases returns (3 000)
72 000
Carriage Inwards 4 000
Duty on imported goods 3 000
Freight & Insurance 1 000
Wages for re-packaging of goods 10 000
Any other expenses directly attributable to purchases 5 000
Cost of Goods Available for sale 107 000
LESS Drawings (Goods only) 2 000
Closing Inventory 15 000 (17 000) (90 000)
GROSS PROFIT 50 000
ADD Discount received 1 000
Interest received 2 000
Commission received 3 000
Rent received 3 000
Profit on disposal of non-current assets 1 000
Decrease in provision for bad debts 1 000
61 000
LESS Expenses
Wages & salaries 15 000
commission paid 1 000
Discount allowed 1 000
Carriage outwards/carriage on sales 1 000
Motor vehicle expenses 1 000
Repairs & maintenance 1 000
Bad debts 1 000
Heat & Light 1 000
Advertising 1 000
Interest and other bank charges 1 000
Rent & rates 2 000
ADD Amount due/accrued/outstanding 500 2 500

Insurance 3 000
LESS Amount prepaid/in advance (1 500) 1 500
Increase in provision for bad debts 1 000
Loss on disposal of assets 1 000
Depreciation 1 000 (31 000)
NET PROFIT/(LOSS) 30 000
 JULES VERNES, TRADER
BALANCE SHEET AS AT 31.12.10
COST DEP NBV
$ $ $
NON-CURRENT ASSETS
Land & Building 100 000 - 100 000
Plant & machinery 10 000 (700) 9 500
Motor van 5 000 (300) 4 700
115 000 1 000 114 000
CURRENT ASSETS
Inventory 15 000
Trade receivables/Accounts receivable/Debtors 11 000
Cash at bank 5 000
Cash in hand 2 000
Other receivables - prepayments 1 500
Petty cash 500
35 000
LESS CURRENT LIABILITIES
Trade payables/Accounts payable/Creditors 8 000
Bank Overdraft 6 500
Other payables - Accruals 500 (15 000)
WORKING CAPITAL 20 000

NET ASSETS 134 000

REPRESENTED BY
Capital 98 000
ADD Net Profit 30 000
128 000
LESS Drawings (4 000)
CAPITAL OWNED 124 000

NON-CURRENT LIABILITIES
Loan from Bank 10 000
CAPITAL EMPLOYED 134 000

1 WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES

2 NET ASSETS = NON-CURRENT ASSETS + WORKING CAPITAL

3 CAPITAL = ASSETS - LIABILITIES