Solution Question 6.7
Ledger accounts
Bank Account
|
|
|
€ |
|
|
€ |
|
1/8 |
Capital |
86,000 |
2/8 |
Furniture and fittings |
20,000 |
|
12/8 |
Revenues |
3,000 |
2/8 |
Rent |
3,000 |
|
15/8 |
Revenues |
2,500 |
3/8 |
Equipment |
3,500 |
|
22/8 |
Revenues |
3,000 |
7/8 |
Memorabilia |
5,000 |
|
26/8 |
Revenues |
1,200 |
10/8 |
Wages |
7,000 |
|
31/8 |
Revenues |
1,500 |
13/8 |
Drawings |
1,500 |
|
|
|
|
17/8 |
Electricity |
200 |
|
|
|
|
19/8 |
Advertising |
550 |
|
|
|
|
20/8 |
Wages |
5,000 |
|
|
|
|
23/8 |
C&F |
3,000 |
|
|
|
|
27/8 |
Rates |
300 |
|
|
|
|
|
|
|
|
|
|
|
31/8 |
Balance c/d |
48,150 |
|
|
|
97,200 |
|
|
97,200 |
|
1/9 |
Balance b/d |
48,150 |
|
|
|
Capital Account
|
|
|
€ |
|
|
€ |
|
31/8 |
Balance c/d |
86,000 |
1/8 |
Bank |
86,000 |
|
|
|
|
1/9 |
Balance b/d |
86,000 |
Furniture Account
|
|
|
€ |
|
|
€ |
|
2/8 |
Bank |
20,000 |
|
|
|
|
|
|
|
31/8 |
Balance c/d |
20,000 |
|
|
|
20,000 |
|
|
20,000 |
|
1/9 |
Balance b/d |
20,000 |
|
|
|
Rent Account
|
|
|
€ |
|
|
€ |
|
2/8 |
Bank |
3,000 |
31/8 |
Balance c/d |
3,000 |
|
1/9 |
Balance b/d |
3,000 |
|
|
|
|
|
|
|
|
|
|
Equipment Account
|
|
|
€ |
|
|
€ |
|
3/8 |
Bank |
3,500 |
31/8 |
Balance b/d |
3,500 |
|
1/9 |
Balance c/d |
3,500 |
|
|
|
|
|
|
|
|
|
|
Memorabilia Account
|
|
|
€ |
|
|
€ |
|
3/8 |
Bank |
5,000 |
31/8 |
Balance b/d |
5,000 |
|
1/9 |
Balance c/d |
5,000 |
|
|
|
|
|
|
|
|
|
|
Purchases Account
|
|
|
€ |
|
|
€ |
|
8/8 |
C&F |
3,000 |
29/8 |
Drawing |
200 |
|
24/8 |
C&F |
900 |
31/8 |
Balance c/d |
3,700 |
|
|
|
3,900 |
|
|
3,900 |
|
|
|
|
|
|
|
CF Account (creditors)
|
|
|
€ |
|
|
€ |
|
23/8 |
Bank |
3,000 |
8/8 |
Purchases |
3,000 |
|
31/8 |
Balance c/d |
900 |
24/8 |
Purchases |
900 |
|
|
|
3,900 |
|
|
3,900 |
|
|
|
|
1/9 |
Balance b/d |
900 |
Wages Account
|
|
|
€ |
|
|
€ |
|
10/8 |
Bank |
7,000 |
|
|
|
|
20/8 |
Bank |
5,000 |
31/8 |
Balance c/d |
12,000 |
|
|
|
12,000 |
|
|
12,000 |
|
1/9 |
Balance c/d |
12,000 |
|
|
|
Sales Revenue Account
|
|
|
€ |
|
|
€ |
|
|
|
|
12/8 |
Bank |
3,000 |
|
|
|
|
15/8 |
Bank |
2,500 |
|
|
|
|
22/8 |
Bank |
3,000 |
|
|
|
|
26/8 |
Bank |
1,200 |
|
31/8 |
Balance c/d |
11,200 |
31/8 |
Bank |
1,500 |
|
|
|
11,200 |
|
|
11,200 |
Drawings Account
|
|
|
€ |
|
|
€ |
|
13/8 |
Bank |
1,500 |
|
|
|
|
29/8 |
Purchases |
200 |
31/8 |
Balance c/d |
1,700 |
|
|
|
1,700 |
|
|
1,700 |
|
1/8 |
Balance b/d |
1,700 |
|
|
|
Electricity Account
|
|
|
€ |
|
|
€ |
|
17/8 |
Bank |
200 |
31/8 |
Balance c/d |
200 |
|
|
|
|
|
|
|
Advertising Account
|
|
|
€ |
|
|
€ |
|
19/8 |
Bank |
550 |
31/8 |
Balance c/d |
550 |
|
|
|
|
|
|
|
Rates Account
|
|
|
€ |
|
|
€ |
|
26/8 |
Bank |
300 |
31/8 |
Balance c/d |
300 |
|
|
|
|
|
|
|
Trial Balance
|
|
€ DR |
€ CR |
|
Bank |
48,150 |
|
|
Capital |
|
86,000 |
|
Furniture and fittings |
20,000 |
|
|
Memorabilia |
5,000 |
|
|
Rent |
3,000 |
|
|
Equipment |
3,500 |
|
|
Purchases |
3,700 |
|
|
CF (creditors) |
|
900 |
|
Sales revenue |
|
11,200 |
|
Wages |
12,000 |
|
|
Drawings |
1,700 |
|
|
Electricity |
200 |
|
|
Advertising |
550 |
|
|
Rates |
300 |
|
|
|
98,100 |
98,100 |
Income Statement
|
|
€ |
€ |
|
Sales |
|
11,200 |
|
Less Cost of sales |
|
|
|
Opening inventory |
0 |
|
|
Purchases |
3,700 |
|
|
Closing inventory |
(800) |
2,900 |
|
Gross profit |
|
8,300 |
|
Less expenses |
|
|
|
Rent |
3,000 |
|
|
Wages |
12,000 |
|
|
Electricity |
200 |
|
|
Advertising |
550 |
|
|
Rates |
300 |
16,050 |
|
Net loss |
|
(7,750) |
|
|
|
|
Statement of Financial Position
|
|
€ |
€ |
|
Non-current assets |
|
|
|
Furniture and fittings |
|
20,000 |
|
Equipment |
|
3,500 |
|
Memorabilia |
|
5,000 |
|
|
|
28,500 |
|
Current assets |
|
|
|
Inventory |
800 |
|
|
Bank |
48,150 |
48,950 |
|
|
|
77,450 |
|
Liabilities & Capital |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
Accounts Payables |
|
900 |
|
Capital |
|
|
|
Opening capital |
86,000 |
|
|
Net loss |
(7,750) |
|
|
Drawings |
(1,700) |
76.550 |
|
|
|
77,450 |