Solution for the questions to Financial Statements

NET SALES
ST
Q1 INCOME STATENMENT FOR THE YEAR ENDED 31 DECEMBER2018

Total COS
of other
Details Debit Credit
Sales incomes 190300
Less: Sales return / RIW (800) 189500

Less: cost of sales/ COS

Opening Inventory/opening stock 1000
Add Purchases 92300
Add Carriage Inwards 5200
98500

Less Purchase return (700)

Less Drawings (only goods) (-)
97800

Less Closing Inventory/closing stock (12400) (85400)

Gross Profit 104100
Add Other incomes:
Discount received 3920
Commission received 7000 10920
115020

Less Expenses
Rent and rates 4500
Postage 3000
Stationary 2700
Discount allowed 250
Bad debts 800
Salaries and wages 22120
Advertising 1850
Carriage outwards 1200
Wages -
Power charges -
Heating and lighting - (36420)

Net profit 78600

Q3 INCOME STATENMENT FOR THE YEAR ENDED 31 ST DECEMBER2018

 Solution for the questions to Financial Statements

COS
Details Debit Credit
Sales 146000
Less: Sales return / RIW (-1500) 144500

Less: cost of sales/ COS

Opening Inventory/opening stock 3500
Add Purchases 70000
Add Carriage Inwards 6000
80500

Less Purchase return (1600)

Less Drawings (only goods) (-)
78900

Less Closing Inventory/closing stock (4750) (74150)

Gross Profit 70350

Add other income:

Discount received 6100
76450
Less expenses:
Carriage outwards 3000
Telephone charges 2000
Rent paid 700
Advertisement 1100
Power charges 1000
Salaries & wages 12000 (19800)
56650
Net profit

Q4 INCOME STATENMENT FOR THE YEAR ENDED 31 ST DECEMBER2018

 Solution for the questions to Financial Statements

Details Debit Credit

Sales 44600
Less: Sales return / RIW (200) 44400

Less: cost of sales/ COS

Opening Inventory/opening stock 2000
Add Purchases 25600
Add Carriage Inwards 1400
29000

Less Purchase return (500)

Less Drawings (only goods) (-)
28500

Less Closing Inventory/closing stock (4200) (24300)

Gross Profit 20100

Add:Other Incomes
Discount received 3000
23100

Less : Expenses:
Stationery 500
Carriage outwards 1600
Salaries and wages 9800
Office expenses 200
General expenses 2500
Interest paid 200
Discount allowed 2100
Commission paid 200
Rents and rates 1500 (18600)
Net Profit 4500

Q5 INCOME STATENMENT FOR THE YEAR ENDED 31 ST DECEMBER2018

 Solution for the questions to Financial Statements

COS
Details Debit Credit
Sales 45000
Less: Sales return / RIW (-) 45000

Less: cost of sales/ COS

Opening Inventory/opening stock 1500
Add Purchases 14000
Add Carriage Inwards -
15500

Less Purchase return (-)

Less Drawings (only goods) (-)
15500

Less Closing Inventory/closing stock (2700) (12800)

Gross Profit 32200

Add: other incomes: -

32200
Less:Expenses
Maintainance cost of equipment 750
Rates 1100
Heating and lighting 1300
Postage and telegram 1250
Repairs to premises 1400
Wages 1800 (7600)

Net profit 24600

Q2 INCOME STATENMENT FOR THE YEAR ENDED 31 ST DECEMBER2018

Details Debit Credit

Sales 158000
Less: Sales return / RIW (-) 158000

Less: cost of sales/ COS

Opening Inventory/opening stock 12300
Add Purchases 125000
Add Carriage Inwards 1000
138300

Less Purchase return (-)

Less Drawings (only goods) (-)
138300 COS
Less Closing Inventory/closing stock (10500) (127800)
Gross Profit 30200