Trial Balance as at 30 June 2016

Equipment rental 940

Insurance 1,804
Lighting and heating expenses 1,990
Motor expenses 2,350
Salaries and wages 48,580
Sales 0 382,420
Purchases 245,950
Sundry expenses 624
Lorry 19,400
Accounts payable 0 23,408
Accounts receivable 44,516
Fixtures 4,600
Shop 174,000
Cash at bank 11,346
Drawings 44,000
Capital 0 194,272
Totals 600,100 600,100

Inventory at 30 June 2016 was £29,304. 29,304

Income statement for the year ended 30 June 2016

Sales 382,420
LESS COST OF SALES
Opening Stock 0
Add: Purchases 245,950
245950
Less: Closing Stock 29,304 216,646
Gross Profit 165,774
LESS EXPENSES
Equipment rental 940
Insurance 1,804
Lighting and heating expenses 1,990
Motor expenses 2,350
Salaries and wages 48,580
Sundry expenses 624 56,288
Net Profit 109,486

Statement of financial position as at 30 June 2016

NON-CURRENT ASSETS
Shop 174,000
Fixtures 4,600
Lorry 19,400
198,000
CURRENT ASSETS
Closing Stock 29,304
Accounts receivable 44,516
Cash at bank 11,346 85,166
Total Assets 283,166

FINANCED BY:
Capital 194,272
Add:Net Profit 109,486
303,758
Less:Drawings 44,000 259,758
CURRENT LIABILITIES
Accounts payable 23,408
Total Capital & Liabilities 283,166
Variance 0
 Income statement for the year ended 31 December 2015
Sales 616,585
Less: Returns Inwards 3,200
613,385
LESS COST OF SALES
Opening Inventory 43,940
Add: Purchases 211750
Less:Drawings of Goods only 13750
198000
Add: Carriage Inwards 16675
214675
Less: Returns Outwards 16475 198,200
242,140
Less: Closing Inventory 51,875 190,265
Gross Profit 423,120
Add:Other Income
Discount Received 21,225
Rent Income (149 100-11600) 137,500 158,725
581,845
LESS EXPENSES
Insurance(15 875-2125) 13,750
Advertising (8440+11600) 20,040
Travel Expenses 31,250
Discount Allowed 5,560
Salaries 158,125
Wages 25,000
Carraige Outwards 14,375
Bad Debts 7,250
Deprciation:
Freehold Premises 0
Plant & Machinery (160 000*20%) 32,000
Motor Vehicles (180 000*20%) 36,000
Increase in provision for bad debts (4 215-35 875*13%) 449
Interest on loan (62 500*16%) 10,000 353,799
Net Profit 228,046

Other workings
Provision for Bad Debts 4215
Debtors (35875*0.13) 4663.75
Increase -448.75

Statement of financial position as at 30 June 2016

NON-CURRENT ASSETS Cost Acc Depn NBV
Freehold Premises 268,750
Plant & Machinery (160 000-32000) 128,000
Motor Vehicles (180 000-36 000) 144,000
540,750
CURRENT ASSETS
Closing Inventory 51,875
Receivables (35 875-4 664) 31,211
Prepaid Insurance 2,125
Bank 22,225
Cash 2,060 109,496
Total Assets 650,246

FINANCED BY:
Capital 312,500
Add:Net Profit 228,046
540,546
Less:Drawings (Goods + Cash) 26,875 513,671
NON-CURRENT LIABILITIES
16% Debentures 62,500

CURRENT LIABILITIES
Trade Payables 40875
Loan Interest Accrual 10000
Prepaid Rent Income 11600
Advertising Accrual Invoice 11600 74,075
Total Capital & Liabilities 650,246
Variance 0

Home Work March 2013

 Income statement for the year ended 31 March 2012
Sales
Less: Returns Inwards

LESS COST OF SALES

Opening Inventory 123,300
Add: Purchases 1113030
Less:Drawings of Goods only 9000
1104030
Add: Import Duty on Purchases 294570
1398600
Less: Returns Outwards 0 1,398,600
1,521,900
Less: Closing Inventory 139,320
Gross Profit
Add:Other Income
Discount Received 20,610
Rent Income (32 400 + 3 600) 36,000

LESS EXPENSES
Discount Allowed 67,590
Salaries 197,190
Bad Debts Written Off 23,400
Increase in provision for bad debts (11025-220 500*7%) 4,410
Interest on loan (100000*10%)*9/12 (months) 7,500
Interest on Capital (360 000*10%) 36,000
Stationery (14580-1548) 13,032
Bank Charge 810
Deprciation:
Freehold Premises 0
Motor Vehicles (97 200 - 25 200)*20% 14,400
Furniture & Fittings (31 500*5%) 1,575
Rates & Insurance (25 560+ 3 330 -5400) 23,490
Carraige on Sales 41,400
Net Profit

Other workings
Provision for Bad Debts 11025
Debtors (220 500*0.13) 15435
Increase-Expense -4410

Statement of financial position as at 31 March 2012

NON-CURRENT ASSETS Cost Acc Depn
Freehold Premises 327240 0
Motor Vehicles 97200 39,600
Furniture & Fittings 31500 11,475
CURRENT ASSETS
Closing Inventory 139,320
Receivables (220500-15435) 205,065
Prepaid Insurance 5,400
Rent Income Accrual (Not yet Received) 3,600
Stock of Unused Stationery 1,548
Bank (130 330 - 810) 129,520
Cash 2,610
Total Assets

FINANCED BY:
Capital 360,000
Add:Net Profit 144,393
504,393
Less:Drawings (Goods + Cash) 9,000
NON-CURRENT LIABILITIES
10 Loan-Trust Bank

CURRENT LIABILITIES
Trade Payables 249705
Unpaid Rates 3330
Interest on Loan 7,500
Interest on Capital 36,000
Total Capital & Liabilities
Variance

A post-closing trial balance as at 31 March 2012

DR CR
Net Sales 1,901,160
Net Purchases 1113030
Drawings 9000
Duty on Purchases 294570
Closing Inventory 139,320
Discount Received 20,610
Rent Income (32 400 + 3 600) 36,000
Discount Allowed & Received 67,590 20610
Salaries 197,190
Bad Debts Written Off 23,400
Provision for bad debts (220 500*7%) 15435
Interest on Loan 7,500
Interest on Capital 36,000
Capital 360,000
Trade Receivables 220500
Trade Payables 249705
Freehold Premises 327240
Motor Vehicles 97200
Furniture & Fittings 31500
Provision for depreciation
Motor vehicle (25 200+14 400) 39,600
 Furniture & fittings (9 900+1575) 11,475
Rates & Insurance (25 560+ 3 330 -5400) 23,490
Carraige on Sales 41,400
Bank (130 330 - 810) 129,520
Cash 2,610
Bank Charges 0
10 Loan-Trust Bank 100,000
Stationery (14580-1548) 13,032

2730592 2798095
-67503
-33751.5 -135006

Workings 31 Dec 2010

Accounts Receivable after bad debts = $60,000
New Provision for Bad Debts (5% of $60,000) = $3,000
Actual Bad Debts written off = $2,000

31 Dec 2010 Journals

Details Dr Cr
Bad Debts A/c -Expense 2000
Trade Receivables A/c 2000
Being Bad Debts Written off during the year
Bad Debts A/c -Created/Increase in provision for doubtful debts 3000
Provision for doubtful debts A/c 3000
Being Provision for doubtful debts created i.e increase

Workings 31 Dec 2011

Accounts Receivable after bad debts = $80,000
Actual Bad Debts written off = $3,500
New Provision for Bad Debts (6% of $80,000) = $4,800
Increase in Provision for Bad Debts = $4,800 - $3,000 = $1,800

31 Dec 2011 Journals

Details Dr Cr
Bad Debts A/c -Expense 3500
 Trade Receivables A/c 3500
Being Bad Debts Written off during the year
Bad Debts A/c -Increase in provision for doubtful debts 1800
Provision for doubtful debts A/c 1800
Being Increase Provision for doubtful debts that was created

ii)

iii) Statement of comprehensive income extracts -31 Dec 2010

Operation Expenses
Bad Debts written off 2000
Incraese in provision for Doubtful/Bad Debts 3000 5000
Net Profit

Statement of comprehensive income extracts -31 Dec 2011

Operation Expenses
Bad Debts written off 3500
Incraese in provision for Doubtful/Bad Debts 1800 5300
Net Profit

iv) Statement of financial position extracts -31 Dec 2010

CURRENT ASSETS
Trade Receivables- After Remove Bad Debts 60000
Incraese in provision for Doubtful/Bad Debts 3000 57000
Total Current Assets
 Statement of financial position extracts -31 Dec 2011

CURRENT ASSETS
Trade Receivables- After Remove Bad Debts 80000
Incraese in provision for Doubtful/Bad Debts 4800 75200
Total Current Assets
1,901,160 1 901 160
0
1,901,160

1,382,580
518,580

56,610
575,190

430,797
144,393

NBV
327,240
57,600
20,025
404,865
487,063
891,928

495,393

100,000

296,535
891,928
0
DR 31 December, 2010 Bad Debts A/C CR
Date Details Amount Date Details Amount
Jan Trade Receivable A/c 2,000 P/L Account 5,000
Provision for Bad Debts 3,000
0
Total 5,000 Total 5,000

DR 31 December, 2011 Bad Debts A/C CR

Date Details Amount Date Details Amount
Jan Trade Receivable A/c 3,500 P/L Account 5,300
Provision for Bad Debts 1,800
0
Total 5,300 Total 5,300
41.13 Reid and Benson are in partnership as lecturers and tutors. Interest is to be allowed on capital
and on the opening balances on the current accounts at a rate of 5% per annum and Reid is to be
given a salary of £18,000 per annum. Interest is to be charged on drawings at 5% per annum (see
notes below) and the profits and losses are to be shared Reid 60% and Benson 40%.
The following trial balance was extracted from the books of the partnership at 31 December 2018:

Capital account - Benson

Capital account - Reid
Current account - Benson
Current account - Reid
Drawings - Reid
Drawings - Benson
Sales - goods and services
Purchases of textbooks for distribution
Returns inwards and outwards
Carriage inwards
Staff salaries
Rent
Insurance - general
Insurance - public indemnity
Compensation paid due to Benson error
General expenses
Bad debts written-off
Fixtures and fittings - cost
Fixtures and fittings - depreciation
Accounts receivable and accounts payable
Cash
Total

• An allowance for doubtful debts is to be created of £1,500.

• Insurances paid in advance at 31 December 2017 were General £50; Professional Indemnity £100.
• Fixtures and fittings are to be depreciated at 10% on cost.
• Interest on drawings: Benson £550, Reid £1,050.
• Inventory of books at 31 December 2018 was £1,500.
Required:
Prepare a statement of profit or loss together with an appropriation account at 31 December 2018
together with a statement of financial position as at that date.

Income statement & Appropriation Statement for the year ended 31 December 2018
Sales
Less: Returns Inwards

LESS COST OF SALES

Opening Inventory
Add: Purchases
Less:Drawings of Goods only

Add: Carriage Inwards

Less: Returns Outwards

Less: Closing Inventory

Gross Profit
Add:Other Income
Discount Received
Rent Income

LESS EXPENSES
Staff salaries
Rent
Insurance - general
Insurance - public indemnity
Compensation paid due to Benson error
General expenses
Bad debts written-off
Deprciation:
Fixtures and fittings - cost
Increase in provision for bad debts

Net Profit
Add: Interest on Drawings
Benson
Reid

Less: Interest on Capital

Benson
Reid

Less: Current Accounts

Benson
Reid

Less Partners Salary

Reid

Share of Profit
Benson
Reid

Statement of financial position as at 31 December 2018

NON-CURRENT ASSETS
Fixtures and fittings - cost

CURRENT ASSETS
Closing Inventory
Receivables
Prepaid Insurance
Bank
Cash
Total Assets

FINANCED BY:
Capital
Benson
Reid

Current Accounts
Balance b/d
Interest on Capital
Interest on Current Accounts
Partners Salary
Share of Profit

Less:Drawings

Less: Interest on Drawings

Balance b/d

NON-CURRENT LIABILITIES
Debentures

CURRENT LIABILITIES
Trade Payables
Loan Interest Accrual
Prepaid Rent Income
Advertising Accrual Invoice
Total Capital & Liabilities
Variance
 5%
5%
60% 40%

50000
75000
4000
5000
17000 850
20000 1000
541750
291830
800 330
3150
141150
2500
1000
1500
10000
9500
1150
74000 Cost 74000
12000 62000 6200
137500 23400
400
711480 711480
7400 2023
1500 7400 2024
50 100 7400 2025
22200
550 1050 7400
1500 29600

31 December 2018
541,750
800
540,950

0
291830
0
291830
3150
 294980
330 294,650
294,650
1,000 293,650
247,300

0
0 0
247,300

141,150
2,500
950
1,400
10,000
9,500
1,150

7,400 74000 12000 62000

1,500 6200
175,550
71,750

550
1050 1600
73,350

2500
3750 6250
67,100

200
250 450
66,650

18000
48,650

29190
19460 48650

018
Cost Acc Depn NBV
74000 19,400 54,600 19400
54,600

1,000
136,000
 150
0
400 137,550
192,150

50,000
75,000 125,000
DR Current Account
Benson Reid Date Details Benson Reid
4000 5,000 12/31/2018 Drawings 20000 17,000
2500 3,750 12/31/2018 Interest on Drawings 550 1,050
200 250 OR 12/31/2018
0 18,000 12/31/2018
29190 19,460 12/31/2018
35890 46460
12/31/2018 Balance c/d 15,340 28,410
20000 17,000 Total 35,890 46,460
15890 29460 12/31/2018
550 1,050
15340 28410 43750

23400
0
0
0 23,400
192,150
0
urrent Account CR
Date Details Benson Reid
12/31/2018 Balance b/d 4000 5,000
12/31/2018 Interest on Capital 2500 3,750
12/31/2018 Interest on Current Accounts 200 250
12/31/2018 Partners Salary 0 18,000
12/31/2018 Share of Profit 29190 19,460
0
12/31/2018 0
Total 35,890 46,460
12/31/2018 Balance b/d 15,340 28,410
 DR CR
Capital
Thandeka 50000
Jabulani 30000
Drawings
Thandeka 5000
Jabulani 3000
Current Accounts
Thandeka 500
Jabulani 1500
Salary Paid to Thandeka 7000
Trade Receivables 9500
Trade Payables 7500
Net Profit 25600
Bank 1900
Inventory 6000
Cash 1200
Vehicles @ Cost 10000
Land & Building @ Cost 60000
Equipment @ Cost 20000
Prepaid Expenses 800
Provision for Dep:
Vehicles 2500
Equipment 6000
Total 124000 124000

Interet on Drawings 5%
Interet on Capital 10%
Salary to Thandeka 12000
Share of profit
Thandeka 2 0.666667
Jabulani 1 0.333333
3

Net Profit 25,600

Add: Interest on Drawings
Thandeka 250
Jabulani 150 400
26,000
Less: Interest on Capital
Thandeka 5000
Jabulani 3000 8000
18,000
Less: Current Accounts
Thandeka 0
Jabulani 0 0
18,000
Less Partners Salary
Salary to Thandeka (7000+5000) 12000
 6,000
Share of Profit
Thandeka 4000
Jabulani 2000 6000

Statement of financial position as at 31 December 2018

NON-CURRENT ASSETS Cost Acc Depn NBV
Land & Building @ Cost 60000 0 60,000
Equipment @ Cost 20000 6,000 14,000
Vehicles @ Cost 10000 2,500 7,500

81,500
CURRENT ASSETS
Closing Inventory 6,000
Receivables 9,500
Prepaid Expenses 800
Bank 0
Cash 1,200 17,500
Total Assets 99,000

FINANCED BY:
Capital
Thandeka 50,000
Jabulani 30,000 80,000
DR
Current Accounts Thandeka Jabulani Date
Balance b/d 500 -1,500 12/31/2018
Interest on Capital 5000 3,000 12/31/2018
Interest on Current Accounts 0 0 OR 12/31/2018
Partners Salary 0 5,000 12/31/2018
Share of Profit 4000 2,000 12/31/2018
9500 8500
12/31/2018
Less:Drawings 5000 3,000
4500 5500 12/31/2018
Less: Interest on Drawings 250 150
Balance b/d 4250 5350 9600

NON-CURRENT LIABILITIES
Debentures 0

CURRENT LIABILITIES
Trade Payables 7500
Bank Overdraft 1900
Prepaid Rent Income 0
Advertising Accrual Invoice 0 9,400
Total Capital & Liabilities 99,000
Variance 0
 Current Account
Details Thandeka Jabulani Date Details Thandeka
Balance b/d 1,500 12/31/2018 Balance b/d 500
Drawings 5000 3,000 12/31/2018 Interest on Capital 5000
Interest on Drawings 250 150 12/31/2018 Interest on Current Accounts 0
12/31/2018 Partners Salary 0
12/31/2018 Share of Profit 4000

Balance c/d 4,250 5,350 12/31/2018

Total 9,500 10,000 Total 9,500
12/31/2018 Balance b/d 4,250
CR
Jabulani

3,000
0
5,000
2,000
0
0
10,000
5,350
 Cost
Estimated Residual Value
Estimated Useful Life

(a) Straight-Line Method

Depreciation for each year: Straighline
Annual Depreciation = Cost - Residual Value/ Estimated Useful Life
= 1 700 000- 200000/5 yrs
=1 500 000/5 yrs
=300 000 per year

Details
Yr 1
Yr 2
Yr 3

(b) Depreciation for each year:

Sum of years Digit (5+4+3+2+1=15)
Yr 1
Yr 2
Yr 3

Details
Yr 1
Yr 2
Yr 3

(C)

NBV for Year 3 Using Straight Line = $ 800 000

Details
Yr 4
Workings

Details
Baseline Station
Receivers and transmitters
Servers
(a)- 1 Baseline Station
Depreciation for each year: Straighline Method
Depreciation Per Year = Cost - Residual Value/ Estimated Useful Life
= 1 440 000- 240 000/10 yrs
=1 200 000/10 yrs
=120 000 per year

Details
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5

(a) - 2 Receivers and transmitters

Receivers and Transmitters – Units/Hours of Production Method
Depreciation Unit/Hour = Cost - Residual Value/ Estimated Units/ Hours
= 2 160 000- 560 000/36 500 hrs
=1 600 000/36 500 hrs
=43.84 per hour

Depreciation Method
Units/Hours of Production Method
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5

Details
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5

(a) - 2 Servers
Depreciable Amount = Cost - Residual Value
Depreciation Amount - Is the amount on which depreciation is to be calculated
Depreciation Amount = 372 400 -58 900
= $ 313 500
(Looks like a mistake, residual value cannot exceed cost. Assuming residual value is $58,900 instead)

Depreciation for each year:

Sum of years Digit (5+4+3+2+1=15)
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5

Details
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
$ 1,700,000.00
$ 200,000.00
5

Cost Charge for the Year Accum Depn NBV

$ 1,700,000.00 $ 300,000.00 $ 300,000.00 $ 1,400,000.00
$ 1,700,000.00 $ 300,000.00 $ 600,000.00 $ 1,100,000.00
$ 1,700,000.00 $ 300,000.00 $ 900,000.00 $ 800,000.00

Formula Charge for the Year

5/15 * 1 700 000 $ 566,666.67
4/15 * 1 700 000 $ 453,333.33
3/15 * 1 700 000 $ 340,000.00

Cost Charge for the Year Accum Depn NBV

$ 1,700,000.00 $ 566,666.67 $ 566,666.67 $ 1,133,333.33
$ 1,700,000.00 $ 453,333.33 $ 1,020,000.00 $ 680,000.00
$ 1,700,000.00 $ 340,000.00 $ 1,360,000.00 $ 340,000.00

Cost Charge for the Year Accum Depn NBV

$ 1,700,000.00 $ 160,000.00 $ 1,060,000.00 $ 640,000.00
(800 000*20%) (900 000+ 160 000) (1 700 000)

Estimated ResiduaEstimated Residual Value

$ 1,440,000.00 $ 240,000.00
$ 2,160,000.00 $ 560,000.00
$ 372,400.00 $ 58,900.00
Cost Charge for the Year Accum Depn NBV
$ 1,440,000.00 $ 120,000.00 $ 120,000.00 $ 1,320,000.00
$ 1,440,000.00 $ 120,000.00 $ 240,000.00 $ 1,200,000.00
$ 1,440,000.00 $ 120,000.00 $ 360,000.00 $ 1,080,000.00
$ 1,440,000.00 $ 120,000.00 $ 480,000.00 $ 960,000.00
$ 1,440,000.00 $ 120,000.00 $ 600,000.00 $ 840,000.00

Hours Per Yer Formula Charge for the Year

7 000 7 000* 43.84 per hour $ 306,880.00
8 000 8 000* 43.84 per hour $ 350,720.00
6 500 6 500* 43.84 per hour $ 284,960.00
5 400 5 400* 43.84 per hour $ 236,736.00
4 100 4 100* 43.84 per hour $ 179,744.00

Cost Charge for the Year Accum Depn NBV

$ 1,440,000.00 $ 306,880.00 $ 306,880.00 $ 1,320,000.00
$ 1,440,000.00 $ 350,720.00 $ 657,600.00 $ 782,400.00
$ 1,440,000.00 $ 284,960.00 $ 942,560.00 $ 497,440.00
$ 1,440,000.00 $ 236,736.00 $ 1,179,296.00 $ 260,704.00
$ 1,440,000.00 $ 179,744.00 $ 1,359,040.00 $ 80,960.00
idual value is $58,900 instead)

Formula Charge for the Year

5/15 * 313 500 $ 104,500.00
4/15 * 313 500 $ 83,600.00
3/15 * 313 500 $ 62,700.00
2/15 * 313 500 $ 41,800.00
1/15 * 313 500 $ 20,900.00

Cost Charge for the Year Accum Depn NBV

$ 372,400.00 $ 104,500.00 $ 104,500.00 $ 267,900.00
$ 372,400.00 $ 83,600.00 $ 188,100.00 $ 184,300.00
$ 372,400.00 $ 62,700.00 $ 250,800.00 $ 121,600.00
$ 372,400.00 $ 41,800.00 $ 292,600.00 $ 79,800.00
$ 372,400.00 $ 20,900.00 $ 313,500.00 $ 58,900.00
AGT5781
INDIRECT
Cash From Operating Activities
Net Profit for the year (Probit) 28900
Adjust fo Non-Cash Items:
Add: Depreciation 2,500
Add: Loss on Disposal
Less: Profit on Disposal
Less: Decrease in Provision for Bad Debts
Add: Increase in Provision for Bad Debts 2,500
Operating cash flows before movements in working capital 31,400

Changes in Working Capital

Add: Decrease in Debtors
Less: Increase Debtors -4590
Add: Deccrease in Creditors -400
Add: Increase in Creditors
Add: Deccrease in Accruals
Add: Increase in Accruals
Add: Deccrease in Prepayments
Add: Increase in Prepayments
Less: Increase Inventory -2870
Add: Decrease in Inventory -7860

Net Cashflow from Operating Activities 23,540

Less: Tax Paid

Less: Interest Paid 0
23,540

Cash From Investing Activities

Less: Purchase of Assets -28,500
Add: Cash from Sale of Assest

Net Cashflow from Investing Activities -28,500

Cash From Investing Activities

Add: Issue of Shares
Less Redemption of Shares
Capital Addition
Add: Dividen from Invetstments
Less: Dividents Paid
Interest Received from Investments
Loan 10000
Loan Repayment
Less: Cash Drawings -3000

Net Cashflow from FinancingActivities 7000

Net Cashflow 2,040

Add: Opening Balance 1150
Closing Balance 3190 3190

DR Disposal Account - Motor Vehicle

Date Details Amount Date

Van

Profit 0
Total 0

DR Motor Vehicle @ NBV

Date Details Amount Date
Jan Balance b/d 140,650
Bank 28,500

Dec
Total 169,150
Balance b/d 166650

DR Motor Vehicle @ Cost

Date Details Amount Date
Jan Balance b/d 146,000
Bank 28,500

Dec
Total 174,500
Balance b/d 174500

DR Disposal Account - Furniture

Date Details Amount Date

Furniture

Profit
Total 0

DR Furniture @ NBV
Date Details Amount Date
Jan Balance b/d
Bank

Dec
Total 0
Balance b/d 0

DR Furniture @ Cost
Date Details Amount Date
Jan Balance b/d
Bank

Dec
Total 0
Balance b/d 0
 1500 7/20/1913 4950
750 3450
250 5850
2500 14250

7/20/1913

-15,500
-10000
-3000
-28,500
 0

Account - Motor Vehicle CR

Details Amount
Acc Dep
Bank
P/L

Total 0

hicle @ NBV CR
Details Amount

Disposed Asset @NBV 0

Depreciation 2,500
Balance c/d 166,650
Total 169,150

hicle @ Cost CR
Details Amount

Disposal @ Cost 0

Balance c/d 174,500

Total 174,500

Account - Furniture CR
Details Amount
Acc Dep 0
Bank
Loss

Total 0

CR
Details Amount

Disposed Asset @NBV

Depreciation 0
Balance c/d
Total 0

CR
Details Amount

Disposal @ Cost 0

Balance c/d
Total 0
Cash From Operating Activities
Net Profit for the year (Probit) 70840
Adjust fo Non-Cash Items:
Add: Depreciation 29,800
Add: Loss on Disposal 1,960
Less: Profit on Disposal -4,200
Less: Decrease in Provision for Bad Debts
Add: Increase in Provision for Bad Debts 27,560
Operating cash flows before movements in working capital 98,400

Changes in Working Capital

Add: Decrease in Debtors
Less: Increase Debtors -3920
Add: Deccrease in Creditors
Add: Increase in Creditors 4760
Add: Deccrease in Accruals -56
Add: Increase in Accruals
Add: Deccrease in Prepayments
Add: Increase in Prepayments -476
Less: Increase Inventory
Add: Decrease in Inventory 8120 8428

Net Cashflow from Operating Activities 106,828

Less: Tax Paid

Less: Interest Paid 0
106,828

Cash From Investing Activities

Less: Purchase of Assets -85,800
Add: Cash from Sale of Assest 34,440

Net Cashflow from Investing Activities -51,360

Cash From Investing Activities

Add: Issue of Shares
Less Redemption of Shares
Capital Addition
Add: Dividen from Invetstments
Less: Dividents Paid
Interest Received from Investments
Loan
Loan Repayment -4480
Less: Cash Drawings -36400

Net Cashflow from FinancingActivities -40880

Net Cashflow 14,588

Add: Opening Balance 10640
Closing Balance 25228 25228

DR Disposal Account - Motor Vehicle

Date Details Amount Date

Van 44,800

Profit 4,200
Total 49,000

DR Motor Vehicle @ NBV

Date Details Amount Date
Jan Balance b/d 57,680
Bank 64,800

Dec
Total 122,480
Balance b/d 84000

DR Motor Vehicle @ Cost

Date Details Amount Date
Jan Balance b/d 106,000
Bank 64,800

Dec
Total 170,800
Balance b/d 126000

Cash From Investing Activities

DR Disposal Account - Furniture

Date Details Amount Date

Furniture 15,400

Profit
Total 15,400

DR Furniture @ NBV
Date Details Amount Date
Jan Balance b/d 40,600
Bank 21,000

Dec
Total 61,600
Balance b/d 38080

DR Furniture @ Cost
Date Details Amount Date
Jan Balance b/d 58,800
Bank 21,000

Dec
Total 79,800
Balance b/d 64400
 0

Account - Motor Vehicle CR

Details Amount
Acc Dep 28,000
Bank 21,000
P/L

Total 49,000

hicle @ NBV CR
Details Amount

Disposed Asset @NBV 16,800

Depreciation 21,680
Balance c/d 84,000 100,800
Total 122,480

hicle @ Cost CR
Details Amount

Disposal @ Cost 44,800

Balance c/d 126,000

Total 170,800

Account - Furniture CR
Details Amount
Acc Dep 0
Bank 13,440
Loss 1,960

Total 15,400

CR
Details Amount

Disposed Asset @NBV 15,400

Depreciation 8,120 53,480
Balance c/d 38,080
Total 61,600

CR
Details Amount

Disposal @ Cost 15,400

Balance c/d 64,400

Total 79,800
DIRECT
Cash Inflows from Operating Activities
Cash Received from Debtor 385,410
Cash Sales 0
Other Cash Received 0
Total Cash Inflows 385,410

Cash Outflows from Operating Activities 0

Cash Received from Creditors 287,270
Cash Purchases 0
Other Cash Payments 0
Expenses
Salaries & Wages 30000
Carriage Inwards 1250
Rent Expenses 17400
Rates 2100
Commission on Sales 16000
Insurance 3500
Printing & Stationery 4350 0
Tax Paid 0
Interest Paid 0 74600
Total Cash Inflows 361,870

Net Cashflow from Operating Activities 23,540

Cash From Investing Activities

Less: Purchase of Assets -28,500
Add: Cash from Sale of Assest

Net Cashflow from Investing Activities -28,500

Cash From Investing Activities

Add: Issue of Shares
Less Redemption of Shares
Capital Addition
Add: Dividen from Invetstments
Less: Dividents Paid
Interest Received from Investments
Loan 10000
Loan Repayment
Less: Cash Drawings -3000

Net Cashflow from FinancingActivities 7000

Net Cashflow 2,040

Add: Opening Balance 1150
Closing Balance 3,190 3190
DR Motor Vehicle @ NBV
Date Details Amount Date
Jan Balance b/d 140,650
Bank 28,500

Dec
Total 169,150
Balance b/d 166650

DR Motor Vehicle @ Cost

Date Details Amount Date
Jan Balance b/d 146,000
Bank 28,500

Dec
Total 174,500
Balance b/d 174500

DR Debtors Ledger Control Account

Date Details Amount Date
Jan Balance b/d 5,100
Sales 390,000
Dec
Total 395,100
Balance b/d 9690

DR Creditors Ledger Control Account

Date Details Amount Date
Jan
Bank 287,270

Balance c/d 5,800 Dec

Total 293,070
12/30/1899 0
 1500
750
250

-15,500 0
-10000 -9600
-3000 -15000
-28,500 -24600

0
hicle @ NBV CR
Details Amount

Disposed Asset @NBV 0

Depreciation 2,500
Balance c/d 166,650
Total 169,150

hicle @ Cost CR
Details Amount

Disposal @ Cost 0

Balance c/d 174,500

Total 174,500

edger Control Account CR

Details Amount

Bank 385,410
Balance c/d 9,690
Total 395,100

Ledger Control Account CR

Details Amount
Balance b/d 6,200
Purchases 286,870

Total 293,070
DR Accumulated Depreciation – Baseline Station
Date Details Amount Date Details
Year 1
Jan Balance b/d
Dec Balance c/d 120,000 Dec Depreciation Expense (P/L)
120,000
Jan Balance b/d

Year 2
Jan Balance b/d
Dec Balance c/d 240,000 Dec Depreciation Expense (P/L)
240,000
Jan Balance b/d

Year 3
Jan Balance b/d
Dec Balance c/d 360,000 Dec Depreciation Expense (P/L)
360,000
Jan Balance b/d

Year 4
Jan Balance b/d
Dec Balance c/d 480,000 Dec Depreciation Expense (P/L)
480,000
Jan Balance b/d

Year 5
Jan Balance b/d
Dec Balance c/d 600,000 Dec Depreciation Expense (P/L)
600,000
Jan Balance b/d

DR Accumulated Depreciation – Receivers and Transmitters

Date Details Amount Date Details
Year 1
Jan Balance b/d
Dec Balance c/d 306,880 Dec Depreciation Expense (P/L)
306,880
Jan Balance b/d

Year 2
Jan Balance b/d
Dec Balance c/d 657,600 Dec Depreciation Expense (P/L)
657,600
 Jan Balance b/d

Year 3
Jan Balance b/d
Dec Balance c/d 942,560 Dec Depreciation Expense (P/L)
942,560
Jan Balance b/d

Year 4
Jan Balance b/d
Dec Balance c/d 1,179,296 Dec Depreciation Expense (P/L)
1,179,296
Jan Balance b/d

Year 5
Jan Balance b/d
Dec Balance c/d 1,359,040 Dec Depreciation Expense (P/L)
1,359,040
Jan Balance b/d

DR Accumulated Depreciation – Servers

Date Details Amount Date Details
Year 1
Jan Balance b/d
Dec Balance c/d 104,500 Dec Depreciation Expense (P/L)
104,500
Jan Balance b/d

Year 2
Jan Balance b/d
Dec Balance c/d 188,100 Dec Depreciation Expense (P/L)
188,100
Jan Balance b/d

Year 3
Jan Balance b/d
Dec Balance c/d 250,800 Dec Depreciation Expense (P/L)
250,800
Jan Balance b/d

Year 4
Jan Balance b/d
Dec Balance c/d 292,600 Dec Depreciation Expense (P/L)
292,600
Jan Balance b/d
 Year 5
Jan Balance b/d
Dec Balance c/d 313,500 Dec Depreciation Expense (P/L)
313,500
Jan Balance b/d
CR
Amount

0
120,000
120,000
120,000

120,000
120,000
240,000
240,000

240,000
120,000
360,000
360,000

360,000
120,000
480,000
480,000

480,000
120,000
600,000
600,000

CR
Amount

0
306,880
306,880
306,880

306,880
350,720
657,600
 657,600

657,600
284,960
942,560
942,560

942,560
236,736
1,179,296
1,179,296

1,179,296
179,744
1,359,040
1,359,040

CR
Amount

0
104,500
104,500
104,500

104,500
83,600
188,100
188,100

188,100
62,700
250,800
250,800

250,800
41,800
292,600
292,600
292,600
20,900
313,500
313,500
 FIFO
Date Purchases (Q) Sales (Q) Opening Stock (Q) Closing Stock
Jan-01 300 @3 $ 900.00
3 300 @3 900
200 @3.15 200 @3.15 630 $ 1,530.00

6 100 @3 200 @3 600

200 @3.15 630 $ 1,230.00

13 150 @3.23 200 @3 600

200 @3.15 630
150 @3.23 484.5 $ 1,714.50

15 200 @3 150 @3.15 472.5

50 @3.15 150 @3.23 484.5 $ 957.00

20 400 @3.38 150 @3.15 472.5

150 @3.23 484.5
400 @3.38 1352 $ 2,309.00

24 250 @3.45 150 @3.15 472.5

150 @3.23 484.5
400 @3.38 1352
250 @3.45 862.5 $ 3,171.50

25 150 @3.15 380 @3.38 1284.4

150 @3.23 250 @3.45 862.5
20 @3.38 $ 2,146.90

28 80 @3.38 300 @3.38 1014

250 @3.45 862.5 $ 1,876.50

29 130 @3.35 300 @3.38 1014

250 @3.45 862.5
130 @3.35 435.5 $ 2,312.00

30 90 @3.38 210 @3.38 709.8

250 @3.45 862.5
130 @3.35 435.5 $ 2,007.80

31 160 @3.42 210 @3.38 709.8

250 @3.45 862.5
130 @3.35 435.5
160 @3.42 547.2 $ 2,555.00
 FILO
Date Purchases (Q) Sales (Q) Opening Stock (Q) Closing Stock
Jan-01 300 @3 $ 900.00
3 300 @3 900
200 @3.15 200 @3.15 630 $ 1,530.00

6 100 @3.15 300 @3 900

100 @3.15 315 $ 1,215.00

13 150 @3.23 300 @3 900

100 @3.15 315
150 @3.23 484.5 $ 1,699.50

15 150 @3.23 300 @3 900

100 @3.15 $ 900.00

20 400 @3.38 300 @3 900

400 @3.38 1352 $ 2,252.00

24 250 @3.45 300 @3 900

400 @3.38 1352
250 @3.45 862.5 $ 3,114.50

25 250 @3.45 300 @3 900

70 @3.38 330 @3.38 1115.4 $ 2,015.40

28 80 @3.38 300 @3
250 @3.38 845 $ 845.00

29 130 @3.35 300 @3 900

250 @3.38 845
130 @3.35 435.5 $ 2,180.50

30 90 @3.38 300 @3 900

250 @3.38 845
40 @3.35 134 $ 1,879.00

31 160 @3.42 300 @3 900

250 @3.38 845
40 @3.35 134
160 @3.42 547.2 $ 2,426.20

AVCO
Date Purchases (Q) Sales (Q) Opening Stock (Q) Closing Stock
Jan-01 300 @3
3 300 @3 $ 900.00 $ 3.06
200 @3.15 200 @3.15 $ 630.00 $ 1,530.00

6 100 @3.06

13 150 @3.23 400 @3.06 $ 1,224.00 $ 3.11

150 @3.23 $ 484.50 $ 1,708.50

15 250 @3.11

20 400 @3.38 300 @3.11 $ 933.00 $ 3.26

400 @3.38 $ 1,352.00 $ 2,285.00

24 250 @3.45 700 @3.26 $ 2,282.00 $ 3.31

250 @3.45 $ 862.50 $ 3,144.50

25 320 @3.3

28 80 @3.3

29 130 @3.35 550 @3.3 $ 1,815.00 $ 3.31

130 @3.35 $ 435.50 $ 2,250.50

30 90 @3.31

31 160 @3.42 590 @3.31 $ 1,952.90 $ 3.33

160 @3.42 $ 547.20 $ 2,500.10

FIFO
LIFO
AVCO

FIFO
Date Purchases (Q) Sales (Q) Opening Stock (Q) Closing Stock
Jan-01 300 @2 $ 600.00
3 300 @2 600
200 @2.10 200 @2.10 420 $ 1,020.00

6 100 @2 200 @2 400

 200 @2.10 420 $ 820.00

13 150 @2.15 200 @2 400

200 @2.10 420
150 @2.15 322.5 $ 1,142.50

15 200 @2 150 @2.10 315

50 @2.10 150 @2.15 322.5 $ 637.50

20 400 @2.25 150 @2.10 315

150 @2.15 322.5
400 @2.25 900 $ 1,537.50

24 250 @2.30 150 @2.10 315

150 @2.15 322.5
400 @2.25 900
250 @2.30 575 $ 2,112.50

25 150 @2.10 380 @2.25 855

150 @2.15 250 @2.30 575
20 @2.25 $ 1,430.00

28 80 @2.25 300 @2.25 675

250 @2.30 575 $ 1,250.00

29 130 @2.32 300 @2.25 675

250 @2.30 575
130 @2.32 301.6 $ 1,551.60

30 90 @2.25 210 @2.25 472.5

250 @2.30 575
130 @2.32 301.6 $ 1,349.10

31 160 @2.28 210 @2.25 472.5

250 @2.30 575
130 @2.32 301.6
160 @2.28 364.8 $ 1,713.90

FILO
Date Purchases (Q) Sales (Q) Opening Stock (Q) Closing Stock
Jan-01 300 @2 $ 900.00
3 300 @2 900
200 @2.10 200 @2.10 630 $ 1,530.00

6 100 @3.15 200 @2 600

 100 @3.15 315 $ 915.00

13 150 @3.23 200 @3 600

100 @3.15 315
150 @3.23 484.5 $ 1,399.50

15 150 @3.23 200 @3 600

100 @3.15 $ 600.00

20 400 @3.38 200 @3 600

400 @3.38 1352 $ 1,952.00

24 200 @3.45 200 @3 600

400 @3.38 1352
200 @3.45 690 $ 2,642.00

25 200 @3.45 200 @3 600

120 @3.38 280 @3.38 946.4 $ 1,546.40

28 80 @3.38 200 @3 600

200 @3.38 676 $ 1,276.00

29 130 @3.35 200 @3 600

200 @3.38 676
130 @3.35 435.5 $ 1,711.50

30 90 @3.38 200 @3 600

200 @3.38 676
40 @3.35 134 $ 1,410.00

31 160 @3.42 200 @3 600

200 @3.38 676
40 @3.35 134
160 @3.42 547.2 $ 1,957.20

AVCO
Date Purchases (Q) Sales (Q) Opening Stock (Q) Closing Stock
Jan-01 300 @3
3 300 @3 $ 900.00 $ 3.06
200 @3.15 200 @3.15 $ 630.00 $ 1,530.00

6 100 @3.06

13 150 @3.23 400 @3.06 $ 1,224.00 $ 3.11

150 @3.23 $ 484.50 $ 1,708.50
15 250 @3.11

20 400 @3.38 300 @3.11 $ 933.00 $ 3.26

400 @3.38 $ 1,352.00 $ 2,285.00

24 200 @3.45 700 @3.26 $ 2,282.00 $ 3.30

200 @3.45 $ 690.00 $ 2,972.00

25 320 @3.3

28 80 @3.3

29 130 @3.35 500 @3.3 $ 1,650.00 $ 3.31

130 @3.35 $ 435.50 $ 2,085.50

30 90 @3.31

31 160 @3.42 540 @3.31 $ 1,787.40 $ 3.34

160 @3.42 $ 547.20 $ 2,334.60

FIFO
LIFO
AVCO
6
sing Stock
$ 900.00

500 @3.06 $ 1,530.00

400 @3.06 $ 1,224.00

550 @3.11 $ 1,710.50

300 @3.11 $ 933.00

700 @3.26 $ 2,282.00

950 @3.31 $ 3,144.50

630 @3.31 $ 2,085.30

550 @3.31 $ 1,820.50

680 @3.31 $ 2,250.80

590 @3.31 $ 1,952.90

750 @3.33 $ 2,331.00

$ 2,555.00
$ 2,426.20
$ 2,331.00
sing Stock
$ 900.00

500 @3.06 $ 1,530.00

400 @3.06 $ 1,224.00

550 @3.11 $ 1,710.50

300 @3.11 $ 933.00

700 @3.26 $ 2,282.00

900 @3.3 $ 2,970.00

580 @3.3 $ 1,914.00

500 @3.3 $ 1,650.00

630 @3.31 $ 2,085.30

540 @3.31 $ 1,787.40

700 @3.34 $ 2,338.00

$ 1,713.90
$ 1,957.20
$ 2,338.00
DR CR
Date Details Amount Date Details Amount
12/31/2018 Balance b/d 5,750 12/31/2018 Balance b/d 130,525
12/31/2018 Bank 125,000 12/31/2018 Purchases 187,500
12/31/2018 Discount Received 15450
12/31/2018 Returns Outwards 10750
12/31/2018 Retun Credit Allowance 8850
12/31/2018 Set off 8000

12/31/2018 Balance c/d 150,975 12/31/2018 Balance c/d 6750

Total 324,775 Total 324,775
12/31/2018 Balance b/d 6750 12/31/2018 Balance b/d 150,975