AT 2 (Accounting Advice)
STAGE 2 ACCOUNTING 2022
AT 2 (Accounting Advice)
Balance Sheet
As at December 31
Assets Current Assets Inventory 1000 Prepaid Expense 750 Interest Receivable 400 Inventory Wrapping Paper 600 Debtors 8000 Cash in Hand
1000 11750
Non-Current Assets Building 23000 Fixtures and Fittings 3000 Land 33000 Office furniture 4000 Investments 10000 Investments on Gov. Bond
5000 78000
Total Assets
89750
Liabilities Creditors 10000 Bank overdraft 6000 Loan 10000 Interest due 1000 Net Assets 62750
Statement of Changes in Owners Equity
Opening capital 49800 Drawings (2000) Profit 14950 Closing Capital 62750
Income Statement
For the year ended December 31
REVENUE Sales 45000 Less sales returns (1000) Less discount allowed (1000) 43000
Opening capital 6000 Purchases 20000 Less purchase returns (5000) Add freight inwards 500 Add customs duty 700 Less closing inventory (1000) Less discount received (1300) Cost of Goods Sold 19900
GROSS PROFIT 23700
OTHER INCOME Interest on Gov. Bonds 600 600
EXPENSES Selling Expenses Display expenses 700 Wrapping paper expense 200 Delivery on sales 900 Travellers expense 2800 4600
Administrative Expenses Cleaning 2000 General expenses 500 2500
Financial Expenses Bad debts 200 Bank charges 250 Interest on Overdraft 1200 1650
PROFIT 14950
