J. White, a sole trader, has produced the following statements of financial position for the years ended

Question:

J. White, a sole trader, has produced the following statements of financial position for the years ended 31 March 20X2 and 31 March 20X3.

J. White is unable to understand why, after he has made a profit for the year ended 31 March 20X3 of Â£5,800, his bank balance has fallen by Â£6,500.
Required
Prepare a report explaining how this has occurred.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction To Financial Accounting

ISBN: 978-0077138448

7th edition

Authors: Anne Marie Ward, Andrew Thomas

See More Books

Question Posted: Dec 20, 2016 10:33 AM

See More Questions

Prop and Flap have produced the following statements of financial position as at 31 October 2008: The following information is relevant to the preparation of the financial statements of the Prop...
Assume that the following statements of financial position are stated and a book value. Construct a post-merger statement of financial position assuming that Amherst Co. purchases Essex Inc. and the...
Big Limited has three subsidiaries, all 80% owned, and, at December 31, 20X5, they have the following statements of financial position: Selected SFP information of Big Limited as at December 31,...
QUESTION ONE Matrix X sells computer hardware and software components as well as other ancillary items to customers all over South Africa. Matrix X also provides installation of hardware and software...
The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. In computing an overhead rate for the year, the companys...
The head of the IT group in a company often is called the chief information officer (CIO) or chief technology officer (CTO). Should the CIO or CTO report to the company president, to the finance...
Cite at least two examples of assets classified as investments on the balance sheet.
Lansing Electronics Inc. manufactures a variety of printers, scanners, and fax machines in its two divisions: the PSF Division and the Components Division. The Components Division produces electronic...
View Policies Current Attempt in Progress Monty Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 225 $6 $1,350 3,675 12 Purchase 525 7...
The shaded area shown is in a flow where the velocity field is given by and the coordinates are measured in meters. Evaluate the volume flow rate and the momentum flux through the shaded area (? = 1...
For many years, company financial statements consisted of a statement of financial position and a statement of profit and loss prepared using the accruals basis. Many also have to include a statement...
Explain what each of the following is intended to measure: a. Return on capital employed; b. Profit margin; c. Asset-turnover ratio; d. Working capital and liquidity ratios; e. Average period of...
What is the advantage of segregating extraordinary items in the income statement?
Lifestyle is how one enacts the self-concept. The way they would enact it is through buying luxury items which is the most premium iPhone. The latent reasons why people want an iPhone 15 all have to...
Make a Tows Matrix that assess the strengths, weakness, opportunities, and threats for Dannon based on the case study For typical corporate strategies under purpose of communication. Strengths 1) 2)...
Now that you've watched the lectures, The Abilene Paradox movie, and the Challenger Disaster Video, I'd like you to think for a moment about when you may have observed the Abilene Paradox or...
Ensuring that the projectadheres to the selected quality standard . Often, ensuring that the project work is done 'correctly' is as important as ensuring that the end result fulfills the project's...
Think about some career planning and development issues; for example, mergers and reorganization uncertainty, lack of upward mobility, getting managers to understand your career potential, and...
In this exercise, you will explore 32-bit constants in MIPS. For the following problems, you will be using the binary data in the table below. If the current value of the PC is 0x00000600, can you...
Decades after the event, Johnson & Johnson (J&J), the 130-year-old American multinational, is still praised for swiftly The company indicated that its response was based on the expectations set forth...
An earthquake caused heavy damage to the Sellwood Antique Store on May 3, 20X8. All merchandise was destroyed. Some accounting data are missing. In conjunction with an insurance investigation, you...
Nguyen Companys insurance agent requires an estimate of the cost of merchandise lost by fire on March 9. Merchandise inventory on January 1 was $70,000. Purchases since January 1 were $170,000;...
An accounting clerk of the Blakely Company absconded with cash and a truck full of electronic merchandise on May 14, 20X4. The following data have been compiled for 20X4: Beginning inventory, January...
Required : a- outline the statement of comperhensive income for the year ended 30 november 2021 b- outline the statment of financial position as at 30 November The Trial Balance of Alim Enterprise at...
International business and environment The MIR requires teams to gather current, or the most recently available, data on the markets people, economy, government, and technological status from online...
Consider the following stream of cash flows. The interest rate is 10%. 0 1 2 3 4 5 6 7 100 100 100 200 0 300 300 300 a) What is the value at time 0 of the cash flow stream? b) What is the value of...

J. White, a sole trader, has produced the following statements of financial position for the years ended

Question:

J. White Statements of financial position as at 31 March Non-current assets Freehold premises Depreciation to date Depreciation to date 1,200 1,000 (750) 140C400 EQUITY AND LIABILITIES 11000 4500 6,500 (3,200 5,200 Current liabilitie Total liobilities Total equity and liabilities

Step by Step Answer:

Dear Mr White Report on reduction in bank balance 20X2X3 The following statement of cash flows i...View the full answer

Introduction To Financial Accounting

Students also viewed these Accounting questions