a) Dave Roberts commenced trading as a retailer of kayaks on 1 April 2019. Dave’s business has traded profitably, and he has given you the following details of his business activities for the 12 months ended 31 March 2020.
£
Sales= 143,000
Inventory at 31 March 2020= 42,000
Distribution costs = 16,000
Purchases of sports wear= 97,000
Trade payables= 2,200
Accruals = 3,000
Receivables = 2,870
Cash at bank = 419
Administrative expenses = 1,400
Insurance = 900
Notes
1) Inventory at 1 April 2019 was £23,230.
2) Non-current assets (at cost on 1 April 2019) were £120,000.
3) Non –current assets at cost comprised buildings (£80,000), fixtures and fittings (£20,000) and a car (£20,000). Annual depreciation is to be provided at 10% on a straight line basis on fixtures and fittings, and at 25% on a reducing balance basis on cars.
4) Capital at 1 April 2019 was £127,719.
5) Insurance was paid for a 12 month period commencing 1 October 2019.
6) Dave withdrew £1,000 from the business each month for his own purposes.
Required
Prepare the Statement of Profit and Loss and the Statement of Financial Position for the year ended 31 March 2020. You will have to use balancing figures where necessary.
Answers
Answer:
hey..
Explanation:
Sales= 143,000
Inventory at 31 March 2020= 42,000
Distribution costs = 16,000
Purchases of sports wear= 97,000
Trade payables= 2,200
Accruals = 3,000
Receivables = 2,870
Cash at bank = 419
Administrative expenses = 1,400
Insurance = 900
Notes
1) Inventory at 1 April 2019 was £23,230.
2) Non-current assets (at cost on 1 April 2019) were £120,000.
3) Non –current assets at cost comprised buildings (£80,000), fixtures and fittings (£20,000) and a car (£20,000). Annual depreciation is to be provided at 10% on a straight line basis on fixtures and fittings, and at 25% on a reducing balance basis on cars.
4) Capital at 1 April 2019 was £127,719.
5) Insurance was paid for a 12 month period commencing 1 October 2019.
6) Dave withdrew £1,000 from the business each month for his own purposes.