Question

endatan Auto Sale Of A Create Tal Financial Reports Protected View • Ex... File Home insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be carefules from the Internet can contain viruses. Unless you need to edit 's safer to stay in Protected View Enable Editing CREATIVE LIMITED Assume that you are working a Chief Financial Officer (CFO) for Creative Limited The CEO of creative limited called a meeting with you and discussed the financial standings of the company. The core agenda of the meeting was to obtain a credit facility from the bank. So in order to obtain the credit facility from the bank you need Trading and Profit Account and for the year ended 30 June 2018 and a Balance Sheet as on June 30, 2018 After examination of the financial records of Creative Limited, you extracted the following information Share Cpital Creditors Accrued Rent Long Term Loan Balance Sheet As at June 30, 2017 GBP EN : 43 966 vehicles 1 1 020 Furniture 2 00 Stock-in-trade 279 Debtors Prepaid insurance Balance at bank Cash in hand GBP £ 20,000 10,000 18,050 3 500 150 3.606 159 55465 55465 Purchased goods from a single supplier who allows a discount of 3% on goods purchased in excess of 30,000 in a year. The discount for the year ended 30 June 2018 amounts to £ 2,658 and would be recceived in August 2018 5 All gods are sold at cost plus 60% Task Page O de Address

Answer 1

Note:

• COGS:

  Opening stock	18050
  purchases	98507
  	116557
  closing stock	7020
  COGS	109537

• Cash in Hand a/c:

  Opening	159	deposited to bank	137178
  Cash sales (balancing fig)	163719	Closing	26700
  	163878		163878

• Debtors' a/c:

  Opening	3500	Recd	4644
  Credit sales (175259.2-163719)	11540.2	Closing	10396.2
  	15040.2		15040.2

• Bank:

  Opening	3606		153739
  Total Receipts as per statements	141822	Unrecorded items
  		Drawings	300
  Closing	8719	carriage o/w	50
  		petrol	30
  		misc. exp	25
  	154144		154144

Solution:

Income Statement

Sales	109537*160%	175259.2
COGS		109537
Gross Profit		65722.2
Discount received		2658
		68380.2
Salaries		16000
Vehicle exp	730+30	760
Rent	420-200	220
Travelling exp		400
Prinitng and stat.		460
Advertisement		1250
Insurance	500+150	650
Truck hire charges		6570
Misc. expenses	3623+25	3648
Carriage Outward	Adjustment	50
Depreciation	(20000*0.3)+(10000*.15)	7500
Total expenses		37508
Operating Profit		30872.2

.

Balance Sheet

Liabilities and equity			Assets
Share capital	43966-300	43666	Vehicles	20000-6000	14000
Retained earnings		30872.2	Furniture	10000-1500	8500
Creditor	11020-2658	8362	Free hold land		25000
			Stock in Trade		7020
Bank (Overdraft)	Note	8716	Debtors	Note	10396.2
			Cash in hand	Note	26700
TOTAL		91616.2	TOTAL		91616.2