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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