Prepare for Mr C.A.D. Bury (Sweet Shop), after his first year of trading, a trial balance, an Income Statement and Statement of Financial Position from the following information:
Electricity £426
Purchases £26133
Capital £15629
Accounts receivable (debtors) £1867
Owners Home Contents Insurance £84
General expenses £376
Accounts payable (creditors) £1590
Ashtrays, pocket calculator £13
Drawings £842
Bank overdraft £526
Cash £40
Employee Loyalty £5000
Cash machine £250
Premises £20000
Suspense account £714
Sales 16500 units
The insurance premium was paid out of the business bank a/c.
The owner insists that the cash machine, which cost £964, be presented in the accounts at a forced liquidation value
The selling price per unit is £2
The purchases figure includes one invoice for £133 for goods which has not been received or paid for.
There was an electricity company strike and the final quarter’s bill of £125 arrived too late to be included in the accounts
Because sweets are easy to sell, the owner believes the closing stock should be valued at sales price, that is £6000. The mark-up on sweets is 50%
Electricity £426
Purchases £26133
Capital £15629
Accounts receivable (debtors) £1867
Owners Home Contents Insurance £84
General expenses £376
Accounts payable (creditors) £1590
Ashtrays, pocket calculator £13
Drawings £842
Bank overdraft £526
Cash £40
Employee Loyalty £5000
Cash machine £250
Premises £20000
Suspense account £714
Sales 16500 units
The insurance premium was paid out of the business bank a/c.
The owner insists that the cash machine, which cost £964, be presented in the accounts at a forced liquidation value
The selling price per unit is £2
The purchases figure includes one invoice for £133 for goods which has not been received or paid for.
There was an electricity company strike and the final quarter’s bill of £125 arrived too late to be included in the accounts
Because sweets are easy to sell, the owner believes the closing stock should be valued at sales price, that is £6000. The mark-up on sweets is 50%
