Question

Beverley Jane

4.1 From the following trial balance, draw up the profit and loss account and balance sheet for Beverley Jane, for the year ending 30/4/10. Dr £ Cr E 20,500 3,200 4,700 3,850 185 320 1,130 10,000 Capital Creditors Debtors Drawings General Expenses Vehicle Expenses Fixtures & Fittings Land & Buildings Bank overdraft Purchases Rent & rates Salaries & Wages Sales Stock on 1/5/09 Printing & stationery Vehicles 1,450 26,950 515 4,365 33,590 4,135 240 2,350 58,740 58,740 The stock was valued at £2,860 on 30/4/09.

balance sheet, income statement, cash flow, net working capital-?

Answer 1

INCOME STATEMENT
Sales		£          33,590
Cost of goods sold:
Beginning stock	£              4,135
Add: Purchases	£            26,950
Cost of goods available for sale	£            31,085
Less: Ending stock	£              2,860
Cost of goods sold		£          28,225
Gross profit		£            5,365
Expenses:
General expenses	£                  185
Vehicle expenses	£                  320
Printing and stationery	£                  240
Rent and rates	£                  515
Salaries and wages	£              4,365	£            5,625
Net loss		-£               260
STATEMENT OF OWNER'S EQUITY
Beginning balance		£          20,500
Less: Net loss for the year	£                  260
Less: Drawings	£              3,850
Net deduction		-£           4,110
Ending balance		£          16,390
BALANCE SHEET
Assets
Debtors		£            4,700
Stock		£            2,860
Furniture and fixtures		£            1,130
Vehicles		£            2,350
Land & Buildings		£          10,000
Total assets		£          21,040
Total liabilities & owners'equity
Creditors		£            3,200
Bank overdraft		£            1,450
Owner's equity		£          16,390
Total liabilities & owners'equity		£          21,040
Note:
Cash flow statement cannot be prepared as previous figures are not available.