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DR CR Capital 1 000 Motor expenses 15 200 Return Outward 1 350 Carriage outwards 1 200 Inventory 01.04.2016 25 800 Purchases 189 650 Debtors
DR | CR
| |
Capital | 1 000 | |
Motor expenses | 15 200 | |
Return Outward | 1 350 | |
Carriage outwards | 1 200 | |
Inventory 01.04.2016 | 25 800 | |
Purchases | 189 650 | |
Debtors | 56 400 | |
Bank | 84 170 | |
Drawings | 34 820 | |
Sales | 265 700 | |
Return Inwards | 760 | |
Creditors | 44 440 | |
Carriage inwards | 550 | |
Motor Vehicles | 120 500 | |
Provision for doubtful debts | 880 | |
Provision for depreciation | 47 340 | |
Total | 444 880 | 444 880
|
The above trial balance was extracted from the books of Manani Investment on 31 May 2017.
Inventory as at 31 May 2017 was valued $ 12 900
Ouestion 1
Prepare statement of comprehensive income and statement of financial position for the year ended 31 May 2017.
QUESTION 2
USE YOUR ANSWERS IN QUESTION 1 TO ANSWER THE FOLLOWING QUESTIONS:
Required:
Calculate the following ratios
a) Gross profit ratio
b) Net profit ratio
c) Current Ratio
d) Quick ratio (Acid test ratio)
e) Inventory turnover
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