Final Acconts For A Sole Trader

Question 1

4 exam tips regarding the predation of final accounts…

Answer 1

1. For all items in the TB decided/note down whether the item should be in the SFP or SPL.
2. A skeleton proforma will be given — we need to fill in the detail of headings.
3. Insert the figures from the TB into the relevant place.
4. Add the statements up

Question 2

Does closing inventory go on SFP or SPL?

Answer 2

Both…
- Dr —> SPF
- Cr —> SPL

Question 3

Describe the accounting equation

Answer 3

A simple way of expressing how the SFP works…

Capital (Proprietor’s Interest) = Assets - Liabilities