Final Accounts Question:

Q1.

Olivia Boulton runs a kitchen and cookware shop in Brighton. Her book-keeper has just extracted the year end trial balance, given as below:

Trial Balance of Olivia Boulton as at 31 December 2002

Description	Dr ()	Cr ()
Stock at 1 January 2002	50,000
Purchases	420,000
Sales		557,500
Shop expenses	6,200
Wages	33,500
Rent paid	750
Telephone expenses	500
Interest paid	4,500
Travel expenses	550
Building	200,000
Shop fittings	40,000
Debtors	10,100
Bank	5,850
Cash	50
Capital		75,000
Drawings	27,000
Loan from bank		150,000
Creditors		14,500
Value added Tax		2,000
Total	799,000	799,000

Stock at 31^st December 2002 was valued at 42,000.

Required: Prepare the Income statement and statement of financial position at the year ended 31^st December 2002.

Solution:

Income statement of Olivia Boulton for the year ended 31^st Decemeber 2012

Sales __________

Less: Cost of goods sold

Opening stock (1 January 2002) ____________

Add: Purchases ____________

Less: Closing Stock (31^st Dec 2002) ____________ ( )

Gross profit ____________

Less Expenses:

Shop expenses __________

Wages ___________

Rent paid ____________

Telephone expenses ___________

Interest paid ____________

Travel expenses ____________ ( )

Net Profit _________________