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Solution NIng

Ning's income statement for the year ended September 30, 2015 shows revenues of $240,350 with a gross profit of $129,050. Total operating expenses were $107,000 resulting in a net profit of $36,200. Ning's statement of financial position as of September 30, 2015 lists total assets of $158,800 including non-current assets of $104,500 and current assets of $54,300. Total liabilities were $97,600 consisting of current liabilities of $57,600 and long-term liabilities of $40,000. Owner's capital was $61,200.

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209 views3 pages

Solution NIng

Ning's income statement for the year ended September 30, 2015 shows revenues of $240,350 with a gross profit of $129,050. Total operating expenses were $107,000 resulting in a net profit of $36,200. Ning's statement of financial position as of September 30, 2015 lists total assets of $158,800 including non-current assets of $104,500 and current assets of $54,300. Total liabilities were $97,600 consisting of current liabilities of $57,600 and long-term liabilities of $40,000. Owner's capital was $61,200.

Uploaded by

fahim tusar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Ning

Income Statement for the year ended September 30, 2015


Details $ $ $
Revenues 248,200
Less: Returns inwards (7,850)
Net Revenue 240,350
Less: Cost of goods sold
Opening inventory 20,450
Add: Purchases 104,750
Add: Carriage inwards 3,400
Goods available for sale 128,600
Less: Closing inventory (17,300)
Cost of sale (111,300)
Gross profit 129,050
Add: Discount received 8,250
Commission received 5,900
Adjusted gross profit 143,200 PDD= (44400-640
Less: Operating expenses Increase in PDD= 1900-15
Advertising expense 10,800
Less: Prepaid (1500 x 3/5) (900) Capital Expenditure:
9,900
Distrubution expenses 17,200
Add: Accrued 2,600 Revenue Expenditure:
19,800
Electricity 4,230
Wages & salaries 35,000
Insurance 5,000 Straight line= Cost x rate
Loss on disposal 2,270
Depreciation of leasehold premises [80000/20] 4,000 Reducing balance= Book v
Depreciation of Computer Equipment [(75000-23000)x25%] 13,000
Depreciation of Fixtures & Fittings [30000 x 10%] 3,000 Book value= Cost - Accum
Bank loan interest paid 3,000
Add: Accrued loan interest [(50000x8%)-3000=1000] 1,000 Leasehold property's dep
4,000
Bad debt 6,400 Gross profit= Sales/Reven
Increase in provision for doubtful debt 400
Total Operating Expenses (107,000)
Net Profit 36,200

Ning
Statement of Financial Position as at September 30, 2015
Details $ $ $
Non-current Assets
Leasehold Premisies 80,000
Less: Accumulated Depreciation (20000+4000) (24,000)
56,000
Computer Equipment 75,000
Less: Accumulated Depreciation (23000+13000) (36,000)
39,000
Fixtures and Fittings 30,000
Less: Accumulated Depreciation (17500+3000) (20,500)
9,500
Total Non-current assets 104,500
Current Assets
Closing inventory 17,300
Trade receivables (44400-6400) 38,000
Less: Provision for doubtful debt (1,900)
36,100
Other receivables: Prepapid Advertising 900
Total Current Assets 54,300
Total Assets 158,800
Liabilities and Capital
Current Liabilities
Trade Payables 38,700
Bank overdraft 5,300
Other payables: Accrued distribution expense 2,600
Accrued Loan Interest 1,000
8% Bank Loan 10,000
Total Current Liabilities 57,600
Add: Long term Liabilities
8% Bank Loan 40,000
Total Liabilities 97,600
Financed by:
Capital 50,000
Add: Net profit 36,200
Less: Drawings (25,000)
Owner's Capital 61,200
Total Liabilities and Capital 158,800
PDD= (44400-6400) x 5%= 1900
Increase in PDD= 1900-1500=400

Capital Expenditure: If an organization buys new non-current assets or


adds value to the existing assets then it is called
capital expenditure. These are reported in the
balance sheet.
Revenue Expenditure: The day to day operational expenses are called
revenue expenditures. These are reported in the
expenses section of the income statement.

Straight line= Cost x rate

Reducing balance= Book value x rate

Book value= Cost - Accumulated Depreciation

Leasehold property's depreciation= Value of Lease/ No. of years of Lease

Gross profit= Sales/Revenue - Cost of goods sold

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