BA10_C09.

qxd 16/12/04 11:31 am Page 100

Part 2 l The financial statements of sole traders

Review questions
9.1

From the following information, draw up the trading account of J Bell for the year ended
31 December 20X7, which was his first year in business:

980
840
1,290
162,918
121,437
11,320

Carriage inwards
Returns outwards
Returns inwards
Sales
Purchases
Stocks of goods: 31 December 20X7

9.2A

The following information is available for the year ended 31 March 20X8. Draw up the
trading account of P Frank for that year.

52,400
16,220
19,480
394,170
2,490
469,320

Stocks: 31 March 20X8

Returns inwards
Returns outwards
Purchases
Carriage inwards
Sales

9.3

From the following trial balance of G Still, draw up a trading and profit and loss account for
the year ended 30 September 20X9, and a balance sheet as at that date.
Dr

Stock 1 October 20X8

Carriage outwards
Carriage inwards
Returns inwards
Returns outwards
Purchases
Sales
Salaries and wages
Warehouse rent
Insurance
Motor expenses
Office expenses
Lighting and heating expenses
General expenses
Premises
Motor vehicles
Fixtures and fittings
Debtors
Creditors
Cash at bank
Drawings
Capital

41,600
2,100
3,700
1,540

100

3,410
188,430
380,400
61,400
3,700
1,356
1,910
412
894
245
92,000
13,400
1,900
42,560
31,600
5,106
22,000
484,253

Stock at 30 September 20X9 was 44,780.

Cr

68,843
484,253

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Chapter 9 l Trading and profit and loss accounts and balance sheets: further considerations

9.4

The following trial balance was extracted from the books of F Sorley on 30 April 20X7. From
it, and the note about stock, prepare his trading and profit and loss account for the year ended
30 April 20X7, and a balance sheet as at that date.
Dr
Cr

Sales
Purchases
Stock 1 May 20X6
Carriage outwards
Carriage inwards
Returns inwards
Returns outwards
Salaries and wages
Motor expenses
Rent
Sundry expenses
Motor vehicles
Fixtures and fittings
Debtors
Creditors
Cash at bank
Cash in hand
Drawings
Capital

210,420

108,680
9,410
1,115
840
4,900
3,720
41,800
912
6,800
318
14,400
912
23,200
14,100
4,100
240
29,440
247,067

18,827
247,067

Stock at 30 April 20X7 was 11,290.

9.5A The following is the trial balance of T Owen as at 31 March 20X9. Draw up a set of financial
statements for the year ended 31 March 20X9.
Dr

52,800

276,400

141,300
1,350
5,840
2,408

Stock 1 April 20X8

Sales
Purchases
Carriage inwards
Carriage outwards
Returns outwards
Wages and salaries
Business rates
Communication expenses
Commissions paid
Insurance
Sundry expenses
Buildings
Debtors
Creditors
Fixtures
Cash at bank
Cash in hand
Drawings
Capital

Cr

63,400
3,800
714
1,930
1,830
208
125,000
45,900
24,870
1,106
31,420
276
37,320
514,194

210,516
514,194

Stock at 31 March 20X9 was 58,440.

101

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Part 2 l The financial statements of sole traders

9.6A F Brown drew up the following trial balance as at 30 September 20X8. You are to draft the
trading and profit and loss account for the year ended 30 September 20X8 and a balance sheet as
at that date.

Capital
Drawings
Cash at bank
Cash in hand
Debtors
Creditors
Stock 30 September 20X7
Van
Office equipment
Sales
Purchases
Returns inwards
Carriage inwards
Returns outwards
Carriage outwards
Motor expenses
Rent
Telephone charges
Wages and salaries
Insurance
Office expenses
Sundry expenses

Dr

Cr

49,675

28,600
4,420
112
38,100
26,300
72,410
5,650
7,470
391,400
254,810
2,110
760
1,240
2,850
1,490
8,200
680
39,600
745
392
216
468,615

468,615

Stock at 30 September 20X8 was 89,404.

9.7 Enter the following transactions in the ledger of A Baker and prepare a trial balance at
31 May, together with a calculation of the profit for the month and a balance sheet at 31 May.

May 31
May 31

102

Started in business with 1,500 in the bank and 500 cash

Purchased goods to the value of 1,750 from C Dunn, agreeing credit terms of 60 days
Bought fixtures and fittings for the bakery for 150, paying by cheque
Bought goods on credit from E Farnham for 115
Paid rent of 300 paying cash
Bought stationery cash book and invoices for 75 paying by cash
Sold goods on credit, value 125, to G Harlem
Bought an old van for deliveries for 2,000 on credit from I Jumpstart
Paid wages of 450 net for the month by cheque, Inland Revenue deductions of 75 to
be paid in the following month
Summarised cash sales for the month and found them to be 2,500. Took a cheque for
500 as own wages for the month. Banked 2,000 out of the cash sales over the month
Closing stock was 500

May 1
May 2
May 3
May 6
May 10
May 12
May 14
May 20
May 30