Question

The following extracts were made from the books and records of Sandy Dandy for the year ended 31 December 2005: 1. Cash book summary Receipt Payments RR Opening balance 13 600 Cash sales 36 280 Interest 890 470 Additional capital 25 000 introduced Rental of premises 2 220 Trade creditors(all for 48 875 purchases) Telephone and postage 2 160 Trade debtors (all in 77 470 respect of sales) Office furniture 2 900 (purchased 1 July 2005) Carriage inwards 4980 Drawings 16 675 Printing and stationery 450 Salaries (office) 14 800 Insurance 3 840 Closing balances 28 670 139 640 139 640 2. Extracts from ledger balances Opening Closing balances balances 01/01/2005 31/12/2005

Answer 1

Required a In the books of sandy lady Income statement For the year Ender Amount Pasticular. Met Sales 1116725 Jessi Cost of goods sold towd (57500 Cross Beofit from sale ! 59225 Less! Depreciation office furniture and ) (425) (280+105) sawib mento Less: Bead dests suf). D el & grill 1 (1725) Jess: Bonus to bookkeeper .no (170) Less: Telephone Expenses (2050) ( 2160 - 110) Home Less: Rent Expense; (2220+180 2400) Less Insurance Expenses to (3359) (.3840 + 1730 -2220) 03- Less: Printing & stationary Turoj Less: salaries Coffice) I wilt 14800) opireting Bofit iront wit 33,255 Kosi sad: Interest Revenue - 1890 4. Нещ Бberg . . (чно) Met Income foors) 33,675 29.1.18 NOU

dimount Balance Sheet as at 31.12.2005 liabilities Amount Assets Capital 1860 Cash 28670 A) Net Income 33675 Stock 7245 E) Dzawings (16,675) (+) Add. Capital 5000 43800 Pepaid Insuzana 2220 Trade Creditos 9770 coffice furniture 2755 Telephone Expense Net) Payable Rent Expense payable & 190 Office Equipment 2520 Bours payable 770 Trade debtor 10930 220 I Cret) - 320 suso 154750

4. Calculation of Repreciation: opening Balance (furnitures 623 aut Less: Acc. Dep. of food esta (3430) Dond 2800.- 1 Book value oll-oals (Less: Dep during the year 2015 2go: het (full year) a NPCHENT (2800 X 10%). SELON 8 2520 Book value as it on 31.12.2005 cs office furniture lurchased 2000 (1-July, 2005) chart sessi rep. @ 10% (for half year) (1454 (2900X10%* 2755 as on 31.12.2005 Book value

Credit (2) Calculation of Gelit Purchase 2 mode during the year 2015 Debit To Trade Ceditors Pasticular I Amount Particular Amount I Cash Payment 48,875 okening te 8190 Balance Credit 50455 Purchasy closing' Balance 4770 il (Bay. fig.) Total 58,645 I Total 37. Calculation of Cost of Total Purchases made during the year OFNAF Cash furchase it Credit Purchase 25t b o tom Souss the O&Pollat priso Souss sit prior G P Calculation of Cost of goods saldo Cogs = opening Stock + Purchasest Carriage Inward - closing = stock 9800 + Souss+ (1980-1990) - 7245 = 57,500

solution] - 1) Calculation sales made of Credit during the year 2015 Defit Brade debtor Credit Pasticular I Amount particular Amount opening Balance 9680 Cash Collection 77,470 cædit Sales / souns Badi defte 1725 (Balancing figure) closing Balance 10930 Total pri Total Core 190125 Total sales made during the year = Cash sales & Credit Sales a 36280 & 8ouus GEN 116,725 + 008

Answer 2

how did you get the 116725 net sales and less cost of goods sold 57500