Question

Assume that you are working as an Accounts Officer for 1 year and now at the end of financial year 2018. The Management of Alpine Limited want to asses the 5 financial perfomance during the year ended June 30, 2018 and have asked you to prepare Profit & Loss and the Balance Sheet for the year then ended. You cme 6 across the following information after the examination of the following records Trial Balance As at 30 June 2018 Sales Stock 1 July 2017 Purchases Manufacturing expenses Selling and marketing expenses Administrative expenses Factory building costat 1 July 2017 Machines -costat 1 July 2017 Factory building - accumulated depreciation at 1 July 2017 Machines accumulated depreciation at 10U 2017 Advance income tak Debtors Cash and bank Creditors Share Capital Retained earnings 2017 GBP £ GBP E 737 000 75,000 301 000 240,000 29,000 51000 200,000 280,000 50 000 87.000 4.000 117 000 51.000 83 000 200 000 90 000 1.347 0001 347 000

Answer 1

Profit & Loss Statement
Particulars	GBP
Sales	725000	=737000-12000
-Opening Stock	-75000
-Purchases	-301000
-Manufacturing Expenses	-240000
-Selling & Marketing Exp.	-28000
-Administrative Exp.	-57000	=51000+(15000*40%)
-Depreciation on Factory Building	-9000	=15000*60%
-Depreciation on Machines	-28950	=193000*15%
-Bad Debts	-15000	=10000+5000
-Income Tax	-25000
Net Income (Loss)	-53950

Balance Sheet
Particulars	GBP
Assets
Non-Current Assets:
Factory Building	200000
-Accumulated Dep.	-65000	=50000+(150000*10%)
Net Factory Building	135000
Machines	277000	=280000-3000
-Accumulated Dep.	-115950	=87000+(193000*15%)
Net Machines	161050
Current Assets:
Advance Income Tax	4000
Debtors	102000	=117000-10000-5000
Cash & Bank	51000
Receivable for machine sold	3000
Total Assets	456050
Equity & Liabilities
Equity:
Share Capital	300000
Retained Earnings	36050	=90000-53950
Liabilities:
Creditors	83000
Income Tax Payable	25000
Advance received	12000
Total Equity & Liabilities	456050