Book 2
Book 2
Book 2
Cost of Sales
Opening Inventory 60,890
Purchase 130,006
190,896
Closing inventory (148,000) 42,896
Gross Profit 334,720
Allowance for receivables 580
335,300
Operation Expense
Insurance (5678-1320) 4,358
Salaries (61600+11200) 72,800
Electricity 4,250
General Expense 8,664
Interest on Loan 1,500
Depreciation:
Machinery (25%*(65000-12400)) 13,150
Fixtures & Fittings (15%*24000) 3,600
Building 7,000 115,322
Net Loss 219,978
STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2020
Current Asset
Inventory 148,000
Cash & Cash Equivalent 20,110
Prepayment - Insurance 1,320
Receivables 64,500 233,930
Total Asset 335,680
Equity
Capital 65,440
Net loss 219,978
285,418
Liabilities
Payable 14,062
Accruals 11,200
25,262
Long term Liabilities
Loan 25,000