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Support Material Financial Statement PDF

The document provides information and terminology for drafting financial statements from a trial balance. It includes a post-adjustment trial balance for Samson Traders with accounts classified. It then shows an income statement summarizing revenues, expenses, and net profit. Finally, it presents a balance sheet laying out assets, liabilities, equity, and the accounting equation of assets equaling liabilities plus equity.

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sanele dlamini
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140 views6 pages

Support Material Financial Statement PDF

The document provides information and terminology for drafting financial statements from a trial balance. It includes a post-adjustment trial balance for Samson Traders with accounts classified. It then shows an income statement summarizing revenues, expenses, and net profit. Finally, it presents a balance sheet laying out assets, liabilities, equity, and the accounting equation of assets equaling liabilities plus equity.

Uploaded by

sanele dlamini
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FINANCIAL STATEMENTS

(You will need to print the worksheet


that was uploaded for purposes of
this section before continuing.)
TERMINOLOGY
• Use Trial Balance to draft these statements.
• Income Statement (shows result of business’s
operations during a financial period) = Statement of
Comprehensive Income OF Mars Services FOR the
period ended 28 February 2013. Includes all Incomes
and Expenses to arrive at a net profit/loss.
• Balance Sheet (shows business’s financial state on a
certain day) = Statement of Financial Position OF Mars
Services (AS) AT 28 February 2013. Includes all Assets,
Liabilities, as well as Owner’s Equity.
• Derived from Accounting Equation, where:
A = L + OE (where OE includes I – E, i.e. profit/loss)
TRIAL BALANCE
POST-ADJUSTMENT TRIAL BALANCE OF SAMSON TRADERS AT 29
FEBRUARY 2012
Dr Cr CLASSIFY
Capital 215 000 Owner’s Equity

Drawings 15 000 (Owner’s Equity)


Contra account

Long-term loan 104 000 Liability (Non-current)

Trade payables 70 000 Liability (Current)

Land and Buildings 210 000 Asset (non-current)

Vehicles 180 000 Asset (non-current)

SARS 25 000 Liability (Current)

Accumulated 25 000 Contra Asset


Depreciation

Inventory 76 000 Asset (Current)

Trade receivable 70 000 Asset (Current)

Bank 80 000 Asset (Current)


TRIAL BALANCE (cont.)
Dr Cr CLASSIFY
Revenue 500 000 Income

Cost of sales 160 000 Expense

Rent income 8 700 Income

Advertising 10 200 Expense

Repairs & Maintenance 20 200 Expense

Salaries & wages 88 000 Expense

Depreciation 12 100 Expense

Administration charges 18 000 Expense

Interest on loan 2 000 Expense

Commission Received 1 800 Income

Insurance expense 8 000 Expense


INCOME STATEMENT

STATEMENT OF COMPREHENSIVE INCOME OF SAMSON TRADERS FOR THE YEAR ENDED 29 FEBRUARY 2012
Revenue 500 000
Cost of sales (160 000)
Gross Profit 340 000
Other Incomes: 10 500
Commission received 1 800
Rent income 8 700
Gross income 350 500
Operating Expenses: (158 500)
Advertising 10 200
Repairs & Maintenance 20 200
Salaries & Wages 88 000
Depreciation 12 100
Administration charges 18 000
Insurance expense 8 000
Interest on loan 2 000
Net profit (loss) for the year 192 000
BALANCE SHEET
STATEMENT OF FINANCIAL POSITION OF SAMSON TRADERS AT 29 FEBRUARY 2012
ASSETS:
Non-current assets 365 000
Land & Buildings 210 000
Vehicles (180 000-25 000 Accumulated Depreciation) 155 000
Current Assets 226 000
Inventory 76 000
Trade & other Receivables 70 000
Cash & cash equivalents 80 000
TOTAL ASSETS 591 000
EQUITY & LIABILITIES
EQUITY: 392 000
Capital (215 000 – 15 000 Drawings) 200 000
Retained income 192 000
LIABILITIES:
Non-current liabilities 104 000
Long- term loan 104 000
Current liabilities 95 000
Trade & other payables 70 000
SARS 25 000
TOTAL EQUITY & LIABILITIES 591 000

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