Friday Traders (FT) is engaged in the business of supplying Blenders and Juicers. FT purchases its...

  

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Friday Traders (FT) is engaged in the business of supplying Blenders and Juicers. FT purchases its products from Sigma Electronics. FT is presently negotiating with a bank for a long term loan and has been asked to provide the latest financial statements. Since FT does not maintain proper accounting records, you are requested to prepare the financial statements from the following information: (i) Assets and liabilities as on 1 January 2018: (ii) (iii) (iv) (v) Equipment (40% depreciated) Stock (stock value of Blenders was double of the Juicers) Prepaid rent up to 30 April 2018 Trade debtors (only for Blenders) Payable to Sigma Electronics Salaries payable Bank overdraft Sales of Blenders are made on credit while Juicers are sold on cash basis. Upto last year, FT was earning a gross profit of 30% on cost of Blenders and 35% on sale value of Juicers. With effect from 1 January 2018: ▪ FT increased sales prices of both the products by 20%; and Sigma Electronics increased the prices of Juicers only by 40%. Rs. in '000 2,490 3,705 280 1,410 3,600 Receipts from credit customers Payments: 60% of the amount of purchases made during the year represents blenders. Summary of bank transactions during the year: Sigma Electronics Insurance for one year starting 1 February 2018 Rent 98 740 Equipment Salaries and wages FLEE Rs. in '000 6,570 8,850 204 826 550 685 11,115 (vi) Debtors amounting to Rs. 138,000 are considered as irrecoverable. (vii) Rent of the premises was increased by 30% with effect from 1 September 2018. (viii) Following payments were made from cash sales and remaining amounts were deposited into the bank: Repairs and maintenance Salaries and wages Drawings (ix) Equipment is depreciated at 8% on cost. Some balances ascertained as at 31 December 2018: Stock* Juicers -Blenders Payable to Sigma Electronics Salaries payable *Comprises of stock purchased in 2018 Rs. in '000 186 124 477 787 Rs. in '000 975 2,597 2,420 134 Required: (a) Prepare statement of profit or loss account for the year ended 31 December 2018. (b) Prepare statement of financial position as at 31 December 2018. Friday Traders (FT) is engaged in the business of supplying Blenders and Juicers. FT purchases its products from Sigma Electronics. FT is presently negotiating with a bank for a long term loan and has been asked to provide the latest financial statements. Since FT does not maintain proper accounting records, you are requested to prepare the financial statements from the following information: (i) Assets and liabilities as on 1 January 2018: (ii) (iii) (iv) (v) Equipment (40% depreciated) Stock (stock value of Blenders was double of the Juicers) Prepaid rent up to 30 April 2018 Trade debtors (only for Blenders) Payable to Sigma Electronics Salaries payable Bank overdraft Sales of Blenders are made on credit while Juicers are sold on cash basis. Upto last year, FT was earning a gross profit of 30% on cost of Blenders and 35% on sale value of Juicers. With effect from 1 January 2018: ▪ FT increased sales prices of both the products by 20%; and Sigma Electronics increased the prices of Juicers only by 40%. Rs. in '000 2,490 3,705 280 1,410 3,600 Receipts from credit customers Payments: 60% of the amount of purchases made during the year represents blenders. Summary of bank transactions during the year: Sigma Electronics Insurance for one year starting 1 February 2018 Rent 98 740 Equipment Salaries and wages FLEE Rs. in '000 6,570 8,850 204 826 550 685 11,115 (vi) Debtors amounting to Rs. 138,000 are considered as irrecoverable. (vii) Rent of the premises was increased by 30% with effect from 1 September 2018. (viii) Following payments were made from cash sales and remaining amounts were deposited into the bank: Repairs and maintenance Salaries and wages Drawings (ix) Equipment is depreciated at 8% on cost. Some balances ascertained as at 31 December 2018: Stock* Juicers -Blenders Payable to Sigma Electronics Salaries payable *Comprises of stock purchased in 2018 Rs. in '000 186 124 477 787 Rs. in '000 975 2,597 2,420 134 Required: (a) Prepare statement of profit or loss account for the year ended 31 December 2018. (b) Prepare statement of financial position as at 31 December 2018.

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