Accounts for sole traders - C3 Flashcards
1
Q
Sole Trader - Profit and loss layout
A
Sales Revenue - Cost of good sold = Gross profit \+ Add (other income) - Less (Expenses) = Profit for the year
2
Q
Sole Trader - Statement of financial position
A
Non Current Assets
Current assets
Current Liabilities
Net current assets
Non-current liabilities
Net assets
Financed by: Opening Capital Add: Profit for the year Less: Drawings Closing Capital
3
Q
In the statement of financial position what should be the same?
A
Net Assets and Closing Capital
4
Q
What is capital also known as
A
Proprietor’s interest
5
Q
Example of expenses
A
Carriage outwards
Wages
Depreciation charges
general expenses
6
Q
Examples of current assets
A
Inventory
Prepayments
Trade Receivables
Cash and Cash Equivalents
7
Q
Examples of current liabilities
A
Accruals
Trade payables
VAT
8
Q
Examples of non-current liabilities
A
Bank Loans
