IPP Business Accounts Task 2 Exemplar PDF

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the document is the Exemplar Answer for Task 2....

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INTRODUCTION TO PROFESSIONAL PRACTICE Unit Workshop: Business Accounts Task 2 Continued

TOVER SHOES TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 July 20— [Last year]

£

£

INCOME Sales Less: Cost of Goods Sold Purchases Add Opening Stock Less Closing Stock

558,000 150,000 42,000 (41,000) 151,000 407,000

GROSS PROFIT

EXPENSES Wages Admin. and General Expenses Depreciation on Van Interest

24,000 150,000 2,000 1,000 (177,000)

NET PROFIT

e8c571950185f2e118cfbc7268961d86.docx

230,000

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TOVER SHOES BALANCE SHEET AS AT 31 JULY 20— [Last year] £

£

£

EMPLOYMENT OF CAPITAL FIXED ASSETS Warehouse

180,000

Van Less Depreciation

20,000 (4,000) 16,000

Furniture

30,000 226,000

Current Assets Closing Stock Debtors Cash at Bank

41,000 60,000 120,000 221,000

Current Liabilities Creditors

(21,000)

NET CURRENT ASSETS

200,000

Less: Long Term Liabilities Bank Loan

(40,000)

NET ASSETS

386,000

CAPITAL EMPLOYED Capital

386,000*

*Calculation of new capital balance Capital Balance 356,000 Net Profit 230,000 Less Drawings (200,000) 386,000

© The University of Law Limited

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