Question

Cr 15 75 350 66 The following information has been extracted from the books of Tonson, a limited liability company, as at 31 October 20X6. Dr $000 $000 Cash Insurance Inventory at 1 November 20X5 General expenses Energy expenses Marketing expenses 50 Wages and salaries 675 Discounts received 50 Share premium account 200 Retained earnings at 1 November 20X5 315 Allowance for receivables at 1 November 20X5 Sales revenue 5,780 Telephone expenses Property expenses Bank 94 Returns inward Trade payables 290 Loan note interest 33 Trade receivables 900 Purchases 3,570 40 100

Answer 1

Statement of Profit and Loss for the year ended 31st October 20X6
Particulars	$'000	$'000
Income -
Sales Revenue	5780
Less: Return inwards	-95	5685
Discount received		50
Total Income ( A)		5735
Expenses -
Cost of good consumed -
Inventory at 1 Nov 20X5	350
Purchases	3570
Inventory at 31 Oct 20X6	-275	3645
Wages and Salaries		715
Telephone expenses		80
Property expenses		100
Loan note interest		33
Irrecoverable debts		155
Insurance		75
General expenses		60
Energy expenses		66
Marketing expenses		45
Depreciation -
Buildings	75
Motor Vehicles	32
Furniture and Equipment	240	347
Total Expenses (B)		5321
Net Profit before Tax (A -B)		414
Tax		-150
Net Profit after Tax		264

Statement of financial position ended 31st October 20X6
Particulars	$'000	$'000
ASSETS
Fixed Assets -
Land at Cost		740
Buildings at cost		1800
Motor Vehicles at cost		240
Furniture and Equipment at cost		1200
Current Assets -
Inventory		275
Trade receivables		900
Cash		15
Prepaid expenses - Marketing expenses		5
Total Assets		5175
EQUITY AND LIABILITIES
Equity -
Share Capital - $1 ordinary Shares		1980
Retained Earnings at 1 nov 20X5	315
Add: Profit during the year	264	579
Share premium account		20
Revaluation Reserve		735
Non Current Liabilites -
7% loan notes		470
Accumulated Depreciation -
Motor Vehicles		112
Furniture and Equipment		660
Current Liabilities -
Allowance for receivables at 1 Nov 20X5		45
Trade payables		290
Bank overdraft		94
Otstanding Wages and Salaries		40
Provision for Tax		150
Total Equity and Liabilities		5175