Accounting Reports 1.25

Income Statement

Label Calc1 Calc2 Running Total
Sales 546,000
Less: Sales Returns 0 546,000
Net Sales 546,000
.
Add: Opening Inventory 30,000
Add: Purchases 320,000
Less: Purchase returns 0
Net purchases 320,000
Goods Available for Sale 350,000
.
Less: Closing Inventory 28,000
Cost of Sales 322,000
Gross Profit 224,000
Expenses:
Selling Expenses 44,000
Office Expenses 18,000
Overdraft Interest 4,000
Bad Debts 4,000
Depreciation – Fittings 6,000
Depreciation – Vehicles 24,000
Loan Interest (Jones) 8,000
Total Expenses 108,000
Add: Decrease in PDD (Provision for Doubtful Debts) 6,000
Profit for the Year 122,000
(APPROPRIATION ACCOUNT BELOW FROM NOW)
Label Calc1 Calc2 Running Total
Add: Interest on Drawings – Smith 4,000
Add: Interest on Drawings – Jones 8,000
134,000
Less: Partner Salary – Smith 12,000
Less: Partner Salary – Jones 0
122,000
Less: Interest on Equity – Smith 10,000
Less: Interest on Equity – Jones 6,000
106,000
Transfer to General Reserve 10,000
96,000
Residual Profit 96,000
Share of Profit – Smith 60,000
Share of Profit – Jones 36,000

Partner Current Accounts

Label DR (£) CR (£) Balance (£)
Laurel - Opening Balance 24,000 24,000
Laurel - Partner Salary 13,000 37,000
Laurel - Interest on Equity 25,000 62,000
Laurel - Share of Profit/Loss 1,120 63,120
Laurel - Interest on Drawings 2,000 61,120
Laurel - Drawings 20,000 41,120
Laurel - Closing Balance 41,120
Hardy - Opening Balance 12,000 12,000
Hardy - Partner Salary 0
Hardy - Interest on Equity 20,000 20,000
Hardy - Share of Profit/Loss 880 20,880
Hardy - Interest on Drawings 3,000 17,880
Hardy - Drawings 30,000 -12,120.0
Hardy - Closing Balance -12,120.0

Statement of Financial Position

Label/Name Cost (£) Depreciation (£) NBV (£)
Non-Current Assets
Property 260,000 40,000.0 300,000
Fittings 100,000 46,000 54,000
Vehicles 120,000 84,000 36,000
Total Non-Current Assets 390,000
.
Current Assets
Closing Inventory 28,000
Trade Receivables 80,000
Office Expenses Receivables 4,000
Provision for Doubtful Debts 4,000
Total Current Assets 116,000
.
Less: Current Liabilities
Trade Payables 64,000
VAT Payable 10,000
Selling Expenses 6,000
Loan Interest Payable 8,000
Cash & Cash Equivalents 40,000
Total Current Liabilities 128,000
.
Working Equity -12,000.0
Net Assets Employed 378,000
Non-Current Liabilities
Loan – Jones 80,000
Net Assets 298,000
.
Smith Equity 100,000
Smith Current 68,000
Jones Equity 60,000
Jones Current -10,000.0
General Reserve 40,000
Revaluation Reserve 40,000
Total Equity 298,000