Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Sole Trader: Simple Statement of Financial Position Example 2
From the following trial balance of J Nhiwatiwa after his first year’s trading, you are required to
draw up a trading and profit and loss account (Income Statement) for the year ended 30 June 20X8 as well as Statement of Financial Position as at 30 June 20×8
| $ | $ | |
|---|---|---|
| DR | CR | |
| Sales | 265,900 | |
| Purchases | 154,870 | |
| Rent | 4,200 | |
| Lighting and heating expenses | 530 | |
| Salaries and wages | 51,400 | |
| Insurance | 2,100 | |
| Buildings | 85,000 | |
| Fixtures | 1,100 | |
| Debtors | 31,300 | |
| Sundry expenses | 412 | |
| Creditors | 15,910 | |
| Cash at bank | 14,590 | |
| Drawings | 30,000 | |
| Vans | 16,400 | |
| Motor running expenses | 4,110 | |
| Capital | 114,202 | |
396,012 | 396,012 |
Stock at 30 June 20X8 was $16,280.
Solution
- The Trading and Profit and Loss Account(Income Statement) solution for this question can be found here.
J Nhiwatiwa
Statement of Financial Position as at 30 June 20×8
| $ | $ | |
|---|---|---|
| Fixed Assets | ||
| Buildings | 85000 | |
| Fixtures | 1100 | |
| Vans | 16400 |
|
| Total Fixed Assets | 102500 | |
| Current Assets | ||
| Stock | 16280 | |
| Debtors | 31300 | |
| Bank | 14590 | |
| Total Current Assets | 62170 | |
| Less: Current Liabilities | ||
| Creditors | (15910) | |
| Working Capital | (46,260) |
|
148760 |
||
| Capital (opening balance) | 114202 | |
| Add Net Profit | 64558 |
|
| 178760 | ||
| Less Drawings | 30000 |
|
148760 |
To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.
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