Sole Trader Final Accounts

Question 1

Buildings and grounds at cost

Answer 1

Asset

Bs(fixed asset)

Question 2

Stock ( opening and closing )

Answer 2

Asset
Trading P+L (Cos)
Bs (Ca)

Question 3

Equipment at cost

Fixtures and fittings at cost

Answer 3

Asset

Bs (FA)

Question 4

Motor vehicles at cost

Answer 4

Asset

Bs(fa)

Question 5

Closing debtors

Provision for bad debts

Answer 5

Asset
Bs(ca)
-closing debtors in Bs

Question 6

Sales

Answer 6

Income

Trading

Question 7

Sales returns

Answer 7

Reduction in income

- sales figures in T a/c

Question 8

Purchases

Answer 8

Expense

T (cos)

Question 9

Purchases returns

Answer 9

Reduction in expense

- purchases fig in T a/c (cos)

Question 10

Carriage inwards

Answer 10

Expense

T (cos)

Question 11

Income due at the end of the year

Eg investment income due

Answer 11

Asset

Bs (ca)

Question 12

Investments

Answer 12

Asset

Bs ( financial assets )

Question 13

Patents

Answer 13

Asset 
Bs ( intangible asset )

Question 14

Closing bank balance

Answer 14

Asset (DR fig ) / Liability (CR fig )
Bs (ca DR fig)
Bs ( creditors: amounts falling due within 1 year CR fig )

Question 15

Any expenses prepaid are the end of the year

Eg. Wages prepaid, advertising

Answer 15

Asset

Bs (ca)

Question 16

Vat/prsi/usc

Answer 16

Liability

Bs( creditors: amounts falling due within 1 year )

Question 17

Gains earned during the year

Eg discount received, decrease in provision for bad debts

Answer 17

Income / Gain

P+L ( Gains)

Question 18

Closing creditors

Answer 18

Liability

Bs( creditors : amounts falling due within 1 year )

Question 19

Loan

Answer 19

Liability

Bs ( Fb: creditors: amounts falling due after 1 year )

Question 20

Loan interest for year

Answer 20

Expense

P+L ( - from operating profit )

Question 21

Any expense due at the end of the year

Eg loan interest due, wages due

Answer 21

Liability

Bs ( creditors : amounts falling due within 1 year )

Question 22

Administration expenses incurred during the year

Eg. Wages and salaries, general expenses, depreciation on office équipement

Answer 22

Expense

P+L (admin expense )

Question 23

Selling and distribution expenses incurred during the year eg. Commission, advertising, depreciation on motor vehicles

Answer 23

Expense

P+L ( selling and distribution expense )

Question 24

Drawings

Answer 24

Used for personal use

Bs (Financed by )