prepare financial report

Task 1 Trial balance Cr: office equipment, petrol, electricity, bad debts, drawings, interest, capital, interest received, creditors, loan. Dr: rent, phone, delivery van repairs, driver’s wages, insurance, delivery van, furniture, bank, wages, fees, Income statement: Dr:creditors, Cr:petrol, electricity, bad debts,interest,driver’s wages, insurance,bank, wages, fees Balance sheet: Dr:capital Cr:creditors, loan,wages, fees Task 2 Car 1: Current period: 30000*0.25=7500 Accumulated depreciation 30000 Car 2: Current period: 30000*0.25*9/12=5625 Accumulated depreciation 30000 Car 3: Current period: 30000*0.25*6/12=3750 Accumulated depreciation 30000 Car 4: Current period: 30000*0.25*3/12=1875 Accumulated depreciation 30000 Car 5: Current period: 0 Accumulated depreciation 30000   Task 3 a) A trial balance   Dr buildings 44000 Motor vehicles 3400 Plant and machinery 25000 Goodwill 1600 Accounts receivable 15000 Cash in hand 270 Stock 8000 Purchase 150000 Discount received 270 Advertising 900 Office expenses 1900 Bad debts 220 Salaries 9000 Cr bank overdraft 15000 Sales 180500 Mortgage 9500 Accumulated depreciation-buildings 2000 Wages 5000 Accounts payable 16000 Accumulated depreciation-plant and machinery 5000 Capital 55100 Provision for doubtful debts 80 Drawings 3000 Bills receivable 2000   b) Profit and loss statement Sales 180500 Purchase 150000 profit    30500 accumulated depreciation 7000 advertising 900 bad debts 220 office expense 1900 20480

Question 1 1500/5=300   Question 2 First year 600 Four years: (1500-600)/4=225   Question 3 2011: (140000-20000)/5*9/12=18000 2012 and 2013:(140000-20000)/5=24000   Question 5 2011: 140000*20%=28000 2012: (140000-28000)*20%=22400 2013: (140000-28000-22400)*20%=17920   Question 6 2011: 140000-28000=112000 2012: 140000-28000-22400=89600 2013: 140000-28000-22400-17920=71680   Question 7 Same as question 5.   Question 8 2011: 140000*50%=70000 2012: (140000-70000)*50%=35000 2013: (140000-70000-35000)*50%=17500   Question 9 (100000-10000)*1/15=6000   Question 10 100000-6000=94000

Question 1 Closing balance of accounts receivable = opening balance of accounts receivable + value of credit sales– cash received from accounts receivable  Therefore, value of credit sales = $141,000   Question 2 Closing balance of accounts receivable = opening balance of accounts receivable + value of credit sales– cash received from accounts receivable – sales return Therefore, value of credit sales = $142,500   Question 3 Dr                        Cr 4100                      8200 74000                     (4200) (75600)                    4000 2500           Question 4 a) Trading accounts Opening inventory      7000 Purchases             44000 Sales                 41500 Closing inventory       9500 b) Trading statement Sales         137500 Purchases     43450     (44000-550)              94050 Electricity      2200 Depreciation    7000 Manager wages  38000 Replacement crockery etc 1100 Casual staff wages   22000                     23750             Question 5 Statement of financial position   Assets Equipment 2000 Fixtures and fittings 4000 Accounts receivable 1230                  7230 Bank            1060                 8290   Liabilities and equity Drawings      13000 Accounts payable 290 Capital   17140 Loan  3000      33430   Question 6 25000 7500 7500 17500 17500 5250 12750 12250 12250 3675 16425 8575 8575 2572.5 18997.5 6002.5 6002.5 1800.75 20798.25 4201.75 4201.75 1260.53 22058.78 2941.22   Question 9 Accounts receivable (9500-8200)                 1300 Inventory (7500-8200)                          (700) Depreciation (36000-26000)                     10000 Accounts payable (7000-10000)                   3000  Cash generated from operating activities:           13600 Loan (20000-20000)