FORMATS

Here are the specimen layouts for the simple final accounts of a sole trader:

Adam Adam
Income Statement Balance Sheet
For the year ended 31 Dec 2016 as at 31 Dec 2016

$ $ Non-current assets $ $ $
Sales xx Premises xx
Sales returns (xx) xx Fixtures xx
Cost of Sales Equipment xx
Opening inventory xx xx
Purchases xx Current assets
Carriage inwards xx Closing Inventory xx
Purchases returns (xx) Trade receivables xx
Closing inventory (xx) (xx) Bank xx
Gross Profit xxxx Cash xx xx
Other incomes
Interest received xx Current Liabilities
Commission received xx Trade payables (xx)
Rent received xx
Discounts received xx xx Net current assets xx
Other expenses Non-current liabilities
Discounts allowed Loan (xx)
Wages & salaries xx Net Assets xxxx
Electricity xx
Bank interest paid xx Financed By
Carriage out xx Capital xx
Advertising xx add: Net profit xx
General expenses xx (xx) less: Drawings (xx)
Net Profit xxxx xxxx
Activity 4.1

From the following trial balance of Mr. William, prepare an Income Statement for the year ended 31 Dec 2007 and a
balance sheet as at that date:

DR CR
$ $
Inventory (01 January 2007) 40,000 Sales 382,000
Carriage out 2,000 Purchases Returns 3,000
Carriage in 5,500 Discounts received 2,500
Sales Returns 1,500 Interest received 1,000
Purchases 190,000 Commission received 3,500
Drawings (in goods) 10,000 Trade Payables 22,000
Discounts allowed 4,500 Capital 76,000
Salaries and wages 60,000 Loan (payable in 10 years) 10,000
Building rent 4,000
Insurance 1,500
Motor expenses 2,100
Office expenses 400
Lighting and heating 1,000
General expenses 8,500
Premises 92,000
Motor vehicles 13,500
Fixture & fitting 4,000
Trade receivables 40,000
Cash at Bank 5,000
Cash in hand 2,500
Drawings (in cash) 12,000

500,000 500,000

Note: Inventory as at 31 Dec 2007 was $ 45,000.

Activity 4.2

You are to prepare the Income Statement of Johnson for the year ended 31 December 2011, together with his
balance sheet at that date.
DR CR
$ $
Opening inventory 17,000 Sales 305,000
Purchases 210,000 Capital 150,000
Sales returns 8,000 Purchase returns 5,000
Carriage inwards 12,500 Loan from bank (repayable in 5 years) 100,000
Wages 35,000 Trade payables 33,000
Rent paid 8,000 Discounts received 2,500
Telephone 1,000 Interest received 4,500
Interest paid 5,000
Travel expenses 2,000
Discounts allowed 3,000
Premises 200,000
Machinery 40,000
Trade receivables 30,000
Bank 7,500
Cash 4,000
Drawings (in cash) 17,000
600,000 600,000

Note: Inventory at 31 December 2011 was valued at $21,000.

Activity 4.3

You are to prepare the Income Statement of Harris for the year ended 30 June 2012, together with his balance sheet at
that date
$ $
Opening inventory 12,000 Capital 73,000
Premises 65,000 Sales 100,000
Motor vehicle 10,000 Trade payables 5,500
Purchases 55,000 Discounts received 2,500
Sales returns 2,000 Purchases returns 4,000
Carriage out 1,000 Loan (2018) 5,000
Wages 9,000
Insurance premium 1,500
Postage 500
Interest paid 1,200
Marketing 800
Trade receivables 8,000
Bank 6,000
Cash 1,000
Drawings (in goods) 4,000
Drawings (in cash) 11,000
Discounts allowed 2,000
190,000 190,000

Note: Inventory at 30 June 2012 was valued at $18,000.