- This the solution to our first example question on incomplete and single entry
- First we need to calculate the Sales figure for the year ended 30 April 20×9:
Sales Figure Calculation
| Details | Amount ($) | Sales Calculation | Details | Amount ($) |
| Drawings | 6 000 | Sales (A) | 102 908 | |
| Shop takings | 96 500 | |||
| Miscellaneous Expenses | 408 | |||
102 908 | 102 908 |
- Then we need to ascertain purchases for the year:
Purchases Figure Calculation
| Purchases Calculation | ||||
| Details | Amount($) | Details | Amount($) | |
| Bank | 70 500 | Purchases for the Period (B) | 78100 | |
| Owings at the end | 7 600 | |||
78 100 | 78 100 |
Income Statement for the year ended 30 April 20×9
| $ | $ | |
| Sales (A) | 102 908 | |
| Cost of Sales | ||
| Opening Stock | 9 500 | |
| Purchases (B) | 78 100 | |
| 87 600 | ||
| Less Closing Stock | (13 620) | |
(73 980) |
||
| 28928 | ||
| Less Expenses | ||
| Vehicle Running Expenses | 1 020 | |
| Lighting and heating | 940 | |
| Sales assistant's wages | 5 260 | |
| Miscellaneous expenses (C) | 1 370 | |
| Bad Debts | 150 | |
| Depriciation | 1 720 | |
| (10 460) | ||
18468 |
NB This is how arrived at the Miscellaneous expenses figure:
| Miscellaneous Expenses | ||||
| Details | Amount($) | Details | Amount($) | |
| Bank | 962 | Total for the year (C) | 1 370 | |
| Cash | 408 | |||
1 370 | 1 370 |
NB Common sense shows a Statement of Affairs is not required in this instance as we are not required to create a Statement of Financial Position or calculate Capital Balances. Also please note the workings above are for illustration purposes only, there are not real double entry accounts.
To access more topics go to the Principles of Accounting Notes.
