Question

2 000 Cost of sales Interest recelved Advertising cos Delivery expenses Office wages Interest on overdra Rent expense Capital 550 1 500 900 30350 500 4700 financial sheet(cash flow,statement of changes in equity) Stock Bank Overdrat Cash foat Debtors (Accounts Racelvable Creditors (accounts Payable Shop Fittings Land and Buildings Mortgage 100 1 450 1 000 35 000 11 700 REQUIRED Prepare the Financial Statements for the period ended 31 December 2012

Answer 1

Ans.	Income Statement
	As on 31 December, 2012
	Particulars			Amt.($)
	Sales			12,000
	Add: Interest Received			650
	Less: Cost of Goods Sold			(8,000)
	advertising cost			(1,500)
	Office Wages			(3,000)
	Interest on Overdraft			(200)
	Rent Expense			(900)
	Delivery Expenses			(850)
	Net Income			$     (1,800)

	Statement of Owner's Equity
	Period Ended December 31, 2012
	Particulars			Amt.($)	Amt.($)
	Opening Capital				30,350
	Add: Net Income			(1,800)
	Less: Drawings			(500)	(2,300)
	Closing Balance				$    28,050

	Balance Sheet as on December 31, 2012
	Liabilities			Amt($)	Assets			Amt($)
	Bank Overdraft			2,000	Cash			100
	Creditors (Accounts Payable)			500	Debtors (Accounts Receivable)			1,450
	Mortgage			11,700	Stock			4,700
	Total Liabilities			14,200	Shop Fittings			1,000
	Equity				Land and Buildings			35,000
	Capital			28,050
	Total Liabilities and Capital			42,250	Total Assets			42,250