Question

Required: a) Prepare a properly formatted Income Statement. b) Prepare a properly formatted Balance Sheet. Trial Balance Workings Dr Cr 460,000 390,000 190,000 124,000 42,000 140,000 2,200,000 72,000 1780,000 336,000 Land and Buildings Shop Fittings Acc Depn-Shop Fittings Bank Overdraft Office Furniture & Equipment Accounts Receivable Sales Inventory (Opening) Purchases ANZ Long-Term Loan Wages Accounts Payable GST Collected GST Paid Capital (opening) Insurance Office Expenses Bad Debts Drawings Customs Duty Depreciation 60,000 80,000 58,000 64,000 200,000 10,000 22,000 4,000 36,000 60,000 48,000 Totals $3,188,000 $3,188,000

Answer 1

Please find the attached sheets for detailed answer,

Please comment for any explanation,

Thanks,

D F F G H K L M N Microsoft Excel - 9.aug А B 1 2 Income Statement 3 Revenues- 4 Sales 2200000 2200000 Cost of goods sold Opening inventory 72000 Purchases 1780000 Closing inventory 64000 1788000 5 Total Revenue Expenditure- 6 COGS 140000 64000 64000 268000 7 268000 8 9 10 460000 11 Cost of goods sold Custom Duty Depreciation Wages Insurance expenses Office expenses Bad debts Total expenditure Net Income 12 13 14 17880001 60000 48000 60000 10000 22000 4000 19920001 208000 390000 190000 200000 42000 970000 15 16 17 18 19 Notes- 20 21 Balance sheet Assets Current Asset Accounts Receivables Inventory GST paid Total Current assets Property Plant and equipment Land and building Shop Fitting Less: Acc DepN Office Equipment Total Asssets Liabilities and equity: Current Liabilities: Accounts payable Bank overdraft GST Collected Total current liabilities Long term liabilities: ANZ long term loan Stockholders Equity Capital (Opening) Add: Transfer from income summary Less: Drawing Total stockholders equity Total Liabilities and equities 80000 124000 58000 262000 262000 1 Gst paid and collected may have been shown as net off. 2 Assets have been presented in liquidity order. 3 Custom duty is expenses which is charged on import of good in the given case custom duty could have also been added to Cost of goods sold. 3360000 22 23 24 25 200000 208000 36000 372000 26 27 28 372000 970000 29 30 31 32 33 Sheet1 Sheet2 Sheet4 Sheet3 Sheet6 Sheet7 Sheets x 08:13 17-09-2020

O @ E F H M N Cost of goods sold Opening inventory 72000 Purchases 1780000 Closing inventory 64000 COGS =+H3+H4-HS Microsoft Excel - 9.aug А B с D 1 2 Income Statement 3 Revenues- 4 Sales 2200000 5 Total Revenue =SUM(D4) 6 Expenditure- 7 8 Cost of goods sold =+H6 9 Custom Duty 60000 10 Depreciation 48000 11 Wages 60000 12 Insurance expenses 10000 13 Office expenses 22000 14 Bad debts 4000 15 Total expenditure =SUM(D8:D14) 16 Net Income =+D5-D15 17 18 19 Notes- 20 1 Gst paid 21 2 Assets 1 22 3 Custom 23 Cost of 24 25 Balance sheet Assets Current Asset : Accounts Receivables 140000 Inventory =+HS GST paid 64000 Total Current assets =SUM(K5:K7) =+K8 Property Plant and equipment: Land and building 460000 Shop Fitting 390000 Less: Acc DepN 190000 =+K11-K12 Office Equipment 42000 Total Asssets =SUM(L 8:L13) Liabilities and equity: Current Liabilities: Accounts payable 80000 Bank overdraft 124000 GST Collected 58000 Total current liabilities =SUM(K17K19) =+K20 Long term liabilities: ANZ long term loan 336000 Stockholders Equity Capital (Opening) 200000 Add: Transfer from income summary =+D16 Less: Drawing 36000 Total stockholders equity =+K24+K25-K26 =+K27 Total Liabilities and equities =+L27+L22+L20 26 27 28 29 30 31 32 33 Sheet1 Sheet2 Sheet4 Sheet3 Sheet6 Sheet7 Sheets x 08:14 17-09-2020