Chapter 14 - Final Accounts For A Sole Trader

Question 1

Is bank on SFP OR P/l

Answer 1

SFP

Question 2

Are sales SFP OR P/l

Answer 2

P/l

Question 3

Are motor expenses SFP or P/l

Answer 3

P/l

Question 4

Are payables SFP OR P/l

Answer 4

SFP

Question 5

Is a non current liability loan SFP or P/l

Answer 5

SFP

Question 6

Are wages SFP or P/l

Answer 6

P/l

Question 7

Is opening inventory SFP OR P/l

Answer 7

P/l

Question 8

Is motor vehicle cost SFP or P/l

Answer 8

SFP

Question 9

Is motor vehicle cost SFP or P/l

Answer 9

SFP

Question 10

Is motor vehicle cost SFP or P/l

Answer 10

SFP

Question 11

Is motor vehicle cost SFP or P/l

Answer 11

SFP

Question 12

Is accumulated depreciation SFP OR P/l

Answer 12

SFP

Question 13

Are receivables SFP OR P/l

Answer 13

SFP

Question 14

Are office expenses SFP OR P/l

Answer 14

P/l

Question 15

Are drawings SFP OR P/l

Answer 15

SFP

Question 16

Are depreciation charges SFP OR p/l

Answer 16

P/l

Question 17

Is closing inventory SFP OR P/l

Answer 17

P/l and SFP

Question 18

Is closing inventory SFP OR P/l

Answer 18

SFP

Question 19

Is purchases SFP OR P/l

Answer 19

P/l

Question 20

Is capital SFP OR P/l

Answer 20

SFP

Question 21

Is interest SFP OR P/l

Answer 21

P/l

Question 22

What is on the statement of profit or loss

Answer 22

Sales revenue
Cost of sales (opening inventory, purchases, closing inventory)
Gross profit
Expenses

Question 23

What does the statement of profit and loss show

Answer 23

Income and expenditure for the year

Question 24

What does the statement of financial position show

Answer 24

Shows the asset and liability of the business

Question 25

Formula for revenue

Answer 25

Sales- sales returns

Question 26

Formula for net purchases

Answer 26

Net purchases = purchases- purchase returns- carriage inward

Question 27

Cost of sales formula

Answer 27

Cost of sales = opening inventory + net purchases- closing inventory

Question 28

What could other income be

Answer 28

• profit on disposal of a non current asset
• adjustment for doubtful debt allowance (credit)
• interest received
• rent received
• dividends received

Question 29

Steps for preparing the final accounts for a sole trader

Answer 29

Step 1 - note down if they go into spl or sfp

Step 2 - fill in the template given

Step 3 - insert figures from the TB into the relevant places

Step 4 - add the statements up

Question 30

What is on the statement of financial position

Answer 30

Non current assets
Current assets
Current liabilities
Non current liabilities
Capital