| Label | Calc1 | Calc2 | Running Total |
| Sales | 920,000 | ||
| Less: Sales Returns | 40,000 | ||
| Net Sales | 880,000 | ||
| . | |||
| Add: Opening Inventory | 75,000 | ||
| Add: Purchases | 625,000 | ||
| Less: Purchase Returns | 13,000 | ||
| Net Purchases | 612,000 | ||
| Add: Carriage Inwards | 3,000 | ||
| Goods Available for Sale | 690,000 | ||
| . | |||
| Less: Closing Inventory | 62,000 | ||
| Cost of Sales | 628,000 | ||
| Gross Profit | 252,000 | ||
| Expenses: | |||
| Advertising Expenses | 22,000 | ||
| Administration Expenses | 21,000 | ||
| Insurance Expenses | 9,000 | ||
| Wages and Salaries | 58,000 | ||
| Loan Interest | 50,000 | ||
| Bad Debts | 8,000 | ||
| Depreciation – Machinery | 15,000 | ||
| Depreciation – Fixtures | 7,000 | ||
| Carriage Outwards | 2,000 | ||
| Discounts Allowed | 4,000 | ||
| Total Expenses | 197,000 | ||
| Any other income: | |||
| Add: Commission Received | 4,000 | ||
| Add: Discounts Received | 6,000 | ||
| Total Any Other Income | 10,000 | ||
| Label | Calc1 | Calc2 | Running Total |
| Profit for the Year Before Appropriations | 65,000 | ||
| (APPROPRIATION ACCOUNT BELOW FROM NOW) | |||
| Add: Interest on Drawings – Laurel | 2,000 | ||
| Add: Interest on Drawings – Hardy | 3,000 | ||
| 70,000 | |||
| Less: Partner Salary – Laurel | 13,000 | ||
| 57,000 | |||
| Less: Interest on Equity – Laurel | 25,000 | ||
| Less: Interest on Equity – Hardy | 20,000 | ||
| 12,000 | |||
| Transfer to General Reserve | 10,000 | ||
| 2,000 | |||
| Residual Profit | 2,000 | ||
| Share of Profit – Laurel | 1,120 | ||
| Share of Profit – Hardy | 880 |
| 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 - Interest on Equity | 20,000 | 32,000 | |
| Hardy - Share of Profit/Loss | 880 | 32,880 | |
| Hardy - Interest on Drawings | 3,000 | 29,880 | |
| Hardy - Drawings | 30,000 | -120.0 | |
| Hardy - Closing Balance | -120.0 |
| Label/Name | Cost (£) | Depreciation (£) | NBV (£) |
| Non-Current Assets | |||
| Property | 1,000,000 | 1,100,000 | |
| Machinery | 75,000 | 27,000 | 48,000 |
| Fixtures | 70,000 | 28,000 | 42,000 |
| Goodwill | 36,000 | 36,000 | |
| Total Non-Current Assets | 1,216,000 | ||
| . | . | . | |
| Current Assets | |||
| Closing Inventory | 62,000 | ||
| Trade Receivables | 40,000 | ||
| Insurance Receivable | 1,000 | ||
| Cash and Cash Equivalents | 72,000 | ||
| Total Current Assets | 169,000 | ||
| . | . | . | |
| Less: Current Liabilities | |||
| Trade Payables | 12,000 | ||
| VAT Payable | 19,000 | ||
| Advertising Payable | 4,000 | ||
| Wages and Salaries Payable | 58,000 | ||
| Loan Interest Payable | 60,000 | ||
| Total Current Liabilities | 153,000 | ||
| . | . | . | 16,000 |
| . | . | . | 1,200,000 |
| Non-Current Liabilities | |||
| Bank Loan | 600,000 | 600,000 | |
| Total Non-Current Liabilities | 600,000 | ||
| . | . | . | |
| Net Assets Employed | 600,000 | ||
| . | . | . | |
| Equity | |||
| Capital - Laurel | 250,000 | ||
| Capital - Hardy | 200,000 | 450,000 | |
| Current Account - Laurel | 41,120 | ||
| Current Account - Hardy | -120.0 | 41,000 | |
| Total Equity |