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

$$
DRCR
Sales265,900
Purchases154,870
Rent4,200
Lighting and heating expenses530
Salaries and wages51,400
Insurance2,100
Buildings85,000
Fixtures1,100
Debtors31,300
Sundry expenses412
Creditors15,910
Cash at bank14,590
Drawings30,000
Vans16,400
Motor running expenses4,110
Capital114,202

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
Buildings85000
Fixtures1100
Vans

16400

Total Fixed Assets102500
Current Assets
Stock16280
Debtors31300
Bank14590
Total Current Assets62170
Less: Current Liabilities
Creditors

(15910)

Working Capital

(46,260)

148760

Capital (opening balance)114202
Add Net Profit

64558

178760
Less Drawings

30000

148760

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