Submitted by: Submitted by rmrafique
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Category: Business and Industry
Date Submitted: 02/24/2011 03:52 AM
e. Prepare financial statements for the business example given in annexure – 1 from a trial balance, making approapriate adjustments. [P5]
JJ Fox & Co.
Income statement for the year ended on 31st December, 2009
Description | £ | £ |
SalesLess – Return InwardsTurnover Opening inventory Add – purchasesCost of goods for saleLess – closing inventory [W1]Cost of saleGross profitAdd – discount receivedLess – property expensesMarketing expenses [W2]Wages & salaries [W4]Other operating expensesReceivable expensesLoan note interestAllowance for receivables [W3]Depreciation – building [W5] Motor vehicles [W7] Furniture & equipments [W8]Profit before taxLess – taxationProfit after taxRetained earning B/DRetained earning C/D | 455,0004641,0005096,000(347,000)130,00055,000933,000366,000195,00043,0009,00097,00052,000312,000 | 7515,000(124,000)7391,000(4749,000)2642,00065,0002707,000(2192,000)515,000(200,000)315,000410,000725,000 |
JJ Fox & Co.
Balance Sheet as at 31st December, 2009
Description £ | £ | £ |
Non-current assets: At costLand 962,000Buildings 2300,000Motor vehicles 312,000Furniture & equipment 156,000 | Depreciation - -156,000858,000 | Total962,0002300,000156,000702,000 |
Total non-current assets | | 4120,000 |
Current assets:Inventory [W1]Receivables [W3]Prepayments: marketing expenses [W2]Cash | 347,0001121,00010,00020,000 | |
Total current assets | | 1498,000 |
Total assets on balance sheet | | 5618,000 |
Description | £ |...