Question 5 (20 marks)
The following is the statement of financial position of TT Ltd. at the
end of the first year of trading
Statement of Financial Position as at 31st
Cash At Bank
Motor Vehicles- Cost
Total Liabilities And Ownerâs Equity
included $5,000 for rent and $300 for rates.
included wages of $630 and electricity of $620.
During 2014, the following transactions took place:
The ownerâs withdrawal
capital In the form of cash of $20,000
A premise continues to
be rented at an annual rental of $20,000. During the year, rent of $15,000 was
paid to owner of the premises.
Rates on the premises
were paid during the year for period 1st April 2014 to 31st
March 2015, $1,300.
A second delivery
vehicle was bought on 1st January for $13,000. This is expected to be used in business
for four years and then be sold for $3,000.
Wages totalling $36,700
were paid during the year. At the end of the year the business owed $860 of
wages for the last week of the year,
totalling $1,820 for the first three quarters of the year were paid. After 31st
December 2014, once the accounts had been finalised for the year, the bill for
the last quarter arrived showing a charge of $690.
$67,000 was bought on credit.
Inventory totalling $8,000
was bought for cash.
Sales on credit totalled
$179,000 (cost $89,000).
Cash sales totalled
$54,000 (cost $25,000).
Receipts from accounts
receivable totalled $178,000.
Payments to accounts
payable totalled $71,000.
Vehicle running expenses
paid totalled $16,200.
Prepare a Statement of Financial Position as at 31st December 2014 and a
Statement of Comprehensive Income for the year to date.
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