SOLE TRADER
Income statement for the year ended 31st December 2023
Sales 95700
Sales returns (1000)
94700
Cost of sales
Opening inventory 7100
Purchases 65000
Purchase returns (500)
Goods for own use (300)
Carriage inwards 1500
Closing stock (7600) (65200)
Gross profit 29500
Discount received 200
Profit on disposal 200 400
29900
Expenses
Discount allowed 380
Wages 8000
Depreciation on motor vehicles 2000
Depreciation on fixtures and fittings 1200
Loan interest 500
Bad debts 500
Provision for irrecoverable debts 120
Rent and rates 3300 (16000)
Net profit 13900
SOLE TRADER
Statement of financial position as at 31st December 2023
Cost Acc NBV
depreciation
Non current assets
Buildings 50000 - 50000
Motor vehicle 25000 (11100) 13900
Fixtures and fixtures 35000 (5000) 30000
93900
Current assets
Inventory 7600
Trade receivable 8120 7500
(Bad debt) (500)
(Provision for doubtful debts) (120)
Bank 3300
Cash 100 18500
Total Assets 1112400
Equity
Opening capital 90000
Net profit 13900
(Drawings) (9300) 94600
Non current Liability
Bank loan 10000 10000
Current liability
Trade payables 7000
Bank overdraft 800 7800
Total Equity and Liabilities 112400
Manufacturing account for the year ended 31 December 2023
RAW MATERIAL
Opening inventory of Raw material 13260
Purchase of Raw material 58000
Carriage inwards of raw material 210
Purchase returns (1000)
Closing inventory of raw materials (14510)
Cost of raw material consumed 55960
Direct Wages 70000 70000
Direct Expenses
Royalty fee 2650 2650
PRIME COST 128610
Indirect manufacturing cost
Factory rent 6100
Factory power/heating 7220
Depreciation of plant & machinery 3000
General factory expenses 8000
Factory insurance 100 24420
Opening work in progress 5000
Closing work in progress (5000)
Production cost of goods completed 153030
MANUFACTURING
Income statement for the year ended 31st December 2023
Sales 195000
Sales returns (200)
194800
Cost of sales
Opening inventory of finished goods 41300
Production cost of goods completed 153030
Goods for own use -
Closing stock of finished goods (44490) (149840)
Gross profit 44960
Discount received -
Expenses
Depreciation of van 1700
Office salaries 17740
Depreciation of office equipment 1000
Sales rep commission 11688
Lighting and heating 1490
Delivery van expenses 1800
Rent and rates 3560 (38978)
Net profit 5982
MANUFACTURING
Statement of financial position as at 31st December 2023
Cost Acc NBV
depreciation
Non current assets
Motor vehicle 6800 1800 5000
Buildings 40000 14400 25600
Fixtures and fixtures 9000 1400 7600
38200
Current assets
Closing Inventory:
Raw materials 14510
Work in progress 5000
Finished goods 44490
Bank 16142
Cash 34340 114482
Total Assets 152682
Equity
Opening capital 155950
Net profit 5982
(Drawings) (24200) 137732
Non current Liability
Bank loan 5000 5000
Current liability
Trade payables 9400
Bank overdraft 550 9950
Total Equity and Liabilities 152682
PARTNERSHIP
Profit and loss appropriation account for the year ended 31st December 2023
Net profit 143600
Interest on drawings
Smith 360
Jones 280 640
Interest on capital
Smith 5000
Jones 2500 (7500)
Salaries
Smith 12000
Jones 8000 (20000)
116740
Profit shared
Smith 50% 58370
Jones 50% 58370 116740
PARTNERSHIP
Statement of financial position as at 31st December 2023
Cost Acc NBV
depreciation
Non current assets
Buildings 50000 50000
Fixtures and fixtures 15000 4500 10500
60500
Current assets
Inventory 68000
Trade receivable 52400
Bank 31600
Cash 200 152200
Total Assets 212700
Equity Smith Jones
Capital a/c 50000 20100 70100
Current a/c 62010 59590 121600
Non current Liability
Bank loan 20000 20000
Current liability
Trade payables 1000 1000
Total Equity and Liabilities 212700
Partners current account
Date Detail Smith Jones Date Detail Smith Jones
Drawings 15000 10000 Balance b/d 2000 1000
Interest on 360 280 Interest on 5000 2500
drawing capital
Balance c/d 62010 59590 Salary 12000 8000
Share of 58370 58370
profits
77370 69870 77370 69870
Balance b/d 62010 59590
Partners capital account
Date Detail Smith Jones Date Detail Smith Jones
Bal b/d 30000 15100
Bal c/d 50000 20100 Bank 20000 5000
10000 50000 50000 20100
Trade Receivables Control a/c
Date Detail £ Date Detail £
Balance b/d Cash/Bank
Credit sales Sales Returns/ Return
inwards
Dishonoured Cheques Bad debts
Interest on overdue ac Discount Allowed
Refunds to customers Contra entry / Set off
Balance c/d (Only if its Balance c/d
mentioned in the
question)
Trade Payables Control a/c
Date Detail £ Date Detail £
Cash/Bank Balance b/d
Discount Received Credit Purchases
Contra entry / Set off Dishonoured Cheques
Purchase Returns/ Interest charged on
Return outwards overdue ac
Balance c/d Refunds from supplier
Balance c/d (only if its
mentioned in the
question)
Ratios
Gross profit percentage
Gross profit x 100
Revenue
profit for the year as a percentage of revenue
Profit for the year x100
Revenue
Return on capital employed
Profit+ Interest x 100
Capital employed
Current ratio
Current Asset
Current Liability
Liquid ratio
Current asset - Inventory
Current liability
