A shop owned by Jeanne Salt informs you that: (a) Assets and liabilities of the shop are

Question:

A shop owned by Jeanne Salt informs you that:

(a) Assets and liabilities of the shop are as shown.

(b) Furniture acquired for £16,200 and written down to £5,400 was scrapped during the year.

(c) A vehicle acquired for £54,000 was sold during the year for £30,000 making a gain of £8,000.

(d) Sales in the year amounting to £846,200 yielded a gross profit ratio of 25%.

(e) Expenses incurred in the year include the following:

£68,200 administrative and selling expenses

£2,100 bad debts

£4,200 depreciation on furniture.

(f) No record has been maintained of amounts drawn by Jeanne from time to time.


Required: 

Prepare:

(a) The Statement of affairs as at 1 April 2010, and

(b) The financial statements for the year ended 31 March 2011.

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Related Book For  answer-question

Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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