Full Income Statement

Question 1

Full income

Answer 1

Revenue - Right
Sales returns (returns in) - Right

Minus each other

Opening inventory - left
Purchases - left
Purchase returns (returns out) - left (minus)
Carriage in - left

Add all beside PR take that away

Answer
Closing inventory - left
Cost of sales - right (minus both above)

Gross profit = (sales rev - sales returns) - cost of sales (right)
Discount received - right
Gross profit + disc received

Expenses

All on left side
Add all up
Total on right side
Take away from answer above
= Profit for the year

Question 2

Full statement of financial position

Answer 2

Non currents Assets

Free hold premises - 3
Vehicles - 3
Equipment - 3

Current Assets

Inventory at time - Accumulated deprecation
Trade receivables - Accumulated deprecation
Prepayment - Accumulated depreciation
Cash and cash equivalents - Accumulated deprecation

Total assets

Capital

Capital at start of year - net book
Capital introduced during the year - net book
Profit for the year - net book
Add
Drawing (take away) - net book

Non current liabilities

Bank loan/ mortgage repayable after more than 12 months - net book value

Current Liabilities

Trade payables - Accumulated Deprecation
Accrual - Accumulated Deprecation
Bank overdraft - Accumulated Deprecation
Bank loan repayable within 12 months - Accumulated Deprecation
Total on net book value

Total capital and liabilities- net book value