Contents Page
Page 3 ~ Section A – Trading, Profit and loss account
Page 4 ~ Section B – Balance Sheet
Page 5 ~ Section C
Page 6 ~ Section D
Page 7 ~ Section E
Page 8 ~ Section F
Page 9 ~ Section G
Page 10 ~ Section H
Page 11 ~ Bibliography
Trading, Profit & Loss account
for Mr. Stanley relating to trading during
£ £ £
Sales 125000
Less Cost of Sales
Opening Stock 10430
Add Purchases 67634
78064
Less returns outward 48 78016
Add Carriage Inward 2120
80136
Less Closing Stock 11250 68886
GROSS PROFIT 56114
Less Expenses
Salaries 28400
Postage & Stationary 98
Rent & Rates (2900-860) 2040
Packaging 3217
Bad debt 126
Provision for Bad Debt 60
Insurance 1220
Electricity (953+263) 1216
Depreciation (3000 + 1680) 4680 41057
Carriage Outward 2850 43907
NET PROFIT 12207
This is a balance sheet for Mr. Stanley as at 31st December 2002.
£ £ £
Fixed Assets
Fixtures & Fittings (15,000 + 8,400) 23,400
Less Depreciation (3,000 + 1,680) 4,680
18,720
Current Assets
Stock 11,250
Debtors 3,200
Less Prov.for bad debt 150 3,050
Bank 590
Add Prepayments 860 1,450
Cash 165
15,915
Less Current Liabilities
Creditors 6,765
Accruals 263
Working Capital 7,028 8,887
27,607
Financed By
Capital 25,000
Add Net Profit 12,027
Less Drawings 9,600
27,607
C. Give an explanation of the accounting treatment for invoices that have been unpaid and unrecorded at the date of the preparation of the final accounts.
This is known as an accrual of expenses, an accrual occurs when expenses that have occurred during an accounting period are not included in the trial balance, they are unpaid and unrecorded. When this occurs the accounting treatment in the profit and loss account would be to add the outstanding amount to the expense in question showing the full amount of expense used up in that accounting period.
In the balance sheet however an accrual is classed as a current liability. This is because the firm owes the outstanding amount and is expected to pay this debt in the short term. The outstanding amount will therefore appear under current liabilities in the Balance Sheet under the heading ACCRUALS. The reasons for making these adjustments is to ensure that the profit and loss account records the cost that has been incurred for that particular accounting period instead of simply the amount that has been paid.
An example of an accrual ~ during the accounting period of January 1st 2002 and December 31st 2002 a phone bill is incurred for the months June to September however it goes unpaid and is not incorporated into the telephone account. This means that adjustments have to be made so that it can be included in the final accounts for that accounting period.
D. Mr. Stanley had paid a proportion of the rates for the following accounting period. Explain how this impacted on the preparation of the accounts for the current accounting period.
A prepayment is when an amount is paid in advance of the accounting period in which it is actually due.
3. The Garners ' take-home pay is over $4,500 a month. Yet, after all expenses are paid, there is only a $220 surplus each month. Based on the information presented in this case, what expenses, if any, seem out of line and could be reduced to increase the surplus at the end of each month?
Accounts receivable ending balance= Beginning balance +sales on Account - cash receipts -sales returns and allowances- charge of uncollectible account
In order for Jim Turin & Sons, Inc to have used this method of accounting it would have had to match the cost of the merchandise with the revenue earned from the sale. Using the matching of revenue and cost the company would have had to have kept an actual inventory and maintained records of the costs associated with said inventory. Since the costs are not immediately deducted under the accrual method they are deferred to the year when the merchandise is
Reimers, Jane L. (2003). Financial Accounting A Business Process Application. Upper Saddle River, New Jersey, Prentice Hall.
The amount each company should recognize as expense is given in a given year depends on the following factors
Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.
There once lived a king, the great king of Uruk in Mesopotamia. This great leader was Gilgamesh. His preserved epic is of great significance to modern day culture. Through Gilgamesh, the fate of mankind is revealed, and the inevitable factor of change is expressed. In the Epic of Gilgamesh, it is a great love, followed by a lingering grief that cause a significant change in the character of Gilgamesh.
- delayed amortization structure which would start as late as 3 years after the opening of the park,
This paper will discuss these steps in detail. Because I work at home, I am not currently involved in any of the steps of the accounting cycle. The examples I give in this paper will be from various jobs I have held in the past.
The software already has this information stored. Then the user can print a check and send it or use electronic payment. The financing cycle is over. Financing activities involve such things as investments in and withdrawals from companies by owners, borrowing and repaying debts. Sage 50 allows users to record receipts separate from customer receipts, which can be credited to an equity account to represent investment or to a liability account to represent the borrowing of money.
n Addition to this with sports in high school student athletes need to keep up their grades in order to play the sport. Some people may say that when you participate in a sport, it takes away from your studying time and then makes you not as academically inclined as others. I believe that that statement is further from the truth in a recent article written by Daniel H. Bowen and Colin Hitt “High-School Sports Aren 't Killing Academics” from The Atlantic Bowen and Hitt state that “We would expect to see a negative relationship between the commitment to athletics and academic achievement. However, the University of Arkansas’s Daniel H. Bowen and Jay P. Greene actually find the opposite. They examine this relationship by analyzing schools’ sports winning percentages as well as
Midterm Exam Accounting 598 Part 2 2. What is the difference between a.. A critical component of any accounting theory course is an understanding of the conceptual framework. 2a. What is the difference between a'' and''?
Most of the ancient civilizations that have peen present throughout history, produce artifacts, stories, poems or other forms of literature that we can learn from and are passed down from generation to generation. The Epic of Gilgamesh is one piece of literature that really takes us back in time and helps us dissect the events of its time. A poem which was written over four thousand years ago The Epic of Gilgamesh can be used as a true historical narration of the Mesopotamian culture. The discussion of religion and cultural aspects, which include their attitudes towards gods, death, heroes and also the social and political organizations, also allows us to not only see, but also feel the experiences of such events. The Epic of Gilgamesh portrays to its readers how rich the ancient Mesopotamian civilization actually was and helps us in figuring out what the true meaning of life is.
Dr. Michael Nagel, an associate professor at the University of the Sunshine Coast, says homework has no scientific benefit and that it could even be bad for a student’s brain. “The adult brain does not fully mature until the third decade of life (a person’s thirty’s) and too much stimulation could cause unnecessary stress on a student.” An analysis conducted by Pearson showed that the number of hours spent on homework was between ten and sixty-five hours a week, with females scoring higher on the hours of homework, stres...
Accounting aids the government and organisations in decision making for their financial stability. This numerical data helps solve real life problems and contributes to how the economy and businesses perform.