Income Statement for M Turner for the year eding 31 March 2012 1 2 3 Sales 4 5 6 7 Net Sales Cost of Sales B 9 10 11 12 13 14 15 16 17 18 Cost of sales GROSS PROFIT 19 20 21 Less Expenses: 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NET PROFIT D A B Balance Sheet for M Turner as at 31 March 2012 2 3 Non-current Assets At Cost 4 5 Depreciation Net Book Value 0 0 0 0 0 . 6 7 8 co o 9 = Current Assets 10 11 12 13 14 0 0 0 15 16 Total Current Assets 17 18 Current Liabilities 19 20 21 22 Total Current Liabilities 23 24 WORKING CAPITAL/Net Current Assets 25 26 Non-current Liabilities 27 28 29 NET ASSETS 30 31 FINANCED BY 32 33 34 35 CAPITAL EMPLOYED 36 37 0 e L6 JX A B E F H 1 R Turner Year End accounts as at 31 March 2012 D G R Turner Trial Balance as at 31- March 2012 E Cr Good DOWN - E Dr 450,000 40,000 96,000 10 260,000 4,700 18,000 900 3,600 1,200 12,600 2,600 1,250 220 60,000 7,700 Premises Fixtures & Fittings Purchases & Sales Bank Opening Inventory Cash Return Outwards Return Inwards General Expenses Discount Allowed Discount Received Bad Debts Motor Vehicles Loan Interest Allowance for Depreciation: Fixture & Fittings Motor Vehicles Capital Salaries Insurance Motor expenses Accounts Receivable Accounts Payable Commission Payable Carriage Inwards Carriage Outwards Drawings 8% Bank Loan 2015 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 16,000 24,000 328,000 23,000 3,400 6,200 22,400 18,450 14,000 850 930 16,000 120,000 776,000 776,000 QUESTION INCOME STATEMENT BALAN Additional Information: 1. Closing inventory as at 31" March is 25,000. 2. General expenses prepaid 300 3. Salaries are due E500 One month's loan interest is owing on the loan. 5. An allowance for doubtful debts is to be created on 2% of Accounts Receivable. 6. Commission payable is outstanding 2,700 7. Insurance owing 600 8. Motor vehicles are to be depreciated at 25% per annum using the Reducing Balance method. 9. Fixture & Fittings are to be depreciated at 10% cost. 10. Premises are not depreciated