Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Sole Trader: Simple Statement of Financial Position Example 1
- From the following trial balance of S Madondo, extracted after one year’s trading, prepare a trading and profit and loss account for the year ended 31 December 20X6 and a Statement of Financial Position as at 31 December 20×6
| DR | CR | |
|---|---|---|
| $ | $ | |
| Sales | 190576 | |
| Purchases | 119832 | |
| Salaries | 56527 | |
| Motor expenses | 2416 | |
| Rent | 1894 | |
| Insurance | 372 | |
| General expenses | 85 | |
| Premises | 95420 | |
| Motor vehicles | 16594 | |
| Debtors | 26740 | |
| Creditors | 16524 | |
| Cash at bank | 16519 | |
| Cash in hand | 342 | |
| Drawings | 8425 | |
| Capital | 138066 | |
345166 | 345166 |
Inventory at 31 December 20X6 was $12,408
Solution
- The Trading and Profit and Loss Account(Income Statement) for this question can be found here.
S Madondo
Statement of Financial Posotion as at 31 December 20×6
| $ | $ | |
| Non-current Assets | ||
| Premises | 95420 | |
| Motor vehicles | 16594 |
|
| 112014 | ||
| Current Assets | ||
| Inventory | 12408 | |
| Debtors | 26740 | |
| Bank | 16519 | |
| Cash | 342 | |
| 56009 | ||
168 023 |
||
| Capital (Balance at the beginning of the year) | 138066 | |
| Add Net Profit | 21,858 |
|
| 159,924 | ||
| Less Drawings | (8425) |
|
| 151499 | ||
| Current Liabilities | ||
| Creditors | 16524 | |
168 023 |
||
To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.
