Question

5 6 2S1 t Required: a) Prepare the journal entires for the above transactions b) Complete the work sheet to adjust the account balances. c) Prepare statement of profit or loss for the year ended 2014. d) Prepare a statement of financial position as at 30 September 2014. SOLUTION R.J Mini Market Trial Balance Adjustment Debit Credit Debit Credi Accounts Inventory as at 1 October 2014 40,000 Sales return Purchases return Purchases Sales Discount received Commission revenue Shop rental Salary 4,000 6,000 160,000 278,100 6,400 4,600 Sot 28,000 33,000 5,200 5,000 Discount allowed Interest expenses Accumulated depreciation: Delivery van Office equipment 28,000 10,000 Delivery van Office equipment Accounts receivables Account payables Bank 70,000 100,000 50,000 39,100 15,600

Answer 1

b)		Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Account Titles	Debit	Credit	Debit	Credit	Debit	Credit
	Inventory as at 1 October	40000			40000	0
	Inventory 30 September			16000		16000
	Sales return	4000				4000
	Purchases return		6000	6000			0
	Purchases	160000			160000	0
	Cost of goods sold			178000		178000
	Sales		278100				278100
	Discount received		6400				6400
	Commission revenue		4600		500		5100
	Commission receivable			500		500
	Shop rental	28000				28000
	Salary	33000				33000
	Discount allowed	5200				5200
	Interest expenses	5000			600	4400
	Prepaid interest			600		600
	Accumulated depreciation:
	*Delivery van		28000		15000		43000
	*Office equipment		10000		2000		12000
	Depreciation expense:
	*Delivery van			15000		15000
	*Office equipment			2000		2000
	Delivery van	70000				70000
	Office equipment	100000				100000
	Accounts receivables	50000				50000
	Account payables		39100				39100
	Bank	15600				15600
	Cash	3400			1000	2400
	Telephone and electricity	8000				8000
	Drawings			1000		1000
	Capital		150000				150000
		522200	522200	219100	219100	533700	533700
c)	STATEMENT OF PROFIT OR LOSS
	Revenue:
	Sales	278100
	Less: Sales returns	4000
	Less: Discounts allowed	5200
	Net sales		268900
	Cost of goods sold		171600
	Gross profit		97300
	Operating expenses:
	Shop rental	28000
	Salary	33000
	Interest expenses	4400
	Telephone and electricity	8000
	Depreciation expense:
	*Delivery van	15000
	*Office equipment	2000	90400
	Operating income		6900
	Other revenues/(espenses):
	Commission revenue		5100
	Net income		12000
d)	STATEMENT OF FINANCIAL POSITION
	Current assets:
	Cash	2400
	Bank	15600
	Accounts receivable	50000
	Inventory 30 September	16000
	Commssion receivable	500
	Prepaid interest	600	85100
	Non-current assets:
	Delivery van
	Accumulated depreciation: Delivery van	70000
	Office equipment	43000	27000
	Accumulated depreciation: Office equipment	100000
	Current liabiities:	12000	88000
	Total assets		200100
	Current Liabilities:
	Accounts payable	39100	39100
	Capital (150000-1000+12000)		161000
	Total liabilties and owner's capital		200100