Trial Balance
Account Title	Debit	Credit
cash A/C	1,419
Capital A/C		1O,500
Bank A/C	3,790
Purchase A/C	2,950
T. Dry A/C		800
G.Low A/C		510
Stationary Expense A/C	89
Buttons Ltd. A/C		89
Sales A/C		1,783
R. Tong A/C	165
M.Singh A/C	306
Sales Return A/C	25
Rent Expense A/C	220
Fixtures A/C	610
Chiefs Ltd. A/C		610
Salary Expense A/C	790
Purchase Return A/C		72
van A/C	6,500
B.Barclay Loan A/C		2,500
TOTAL	16,864	16,864

Could you prepare a short report explaining the current financial status of my business? Also are you able to provide some basic instructions about how to log my future transactions and calculate profit, so that I don’t have to bother you again?
 

Transcribed Image Text:

Started in business with £10,500 cash. Put £9,000 of the cash into a bank account. 3 Bought goods for cash £550. 4 Bought goods on time from: T. Dry £800; F. Hood £930; M. Smith £160; G. Low £510. 5 Bought stationery on time from Buttons Ltd £89. Sold goods on time to: R. Tong £170; L. Fish £240; M. Singh £326; A. Tom £204. Paid rent by cheque £220. 10 Bought fixtures on time from Chiefs Ltd £610. 6. 8. 11 Paid salaries in cash £790. 14 Returned goods to: F. Hood £30; M. Smith £42. 15 Bought van by cheque £6,500. 16 Received loan from B. Barclay by cheque £2,000. Goods returned to us by: R. Tong £5; M. Singh £20. 18 21 Cash sales £145. 24 Sold goods on time to: L. Fish £130; A. Tom £410; R. Pleat £158. We paid the following by cheque: F. Hood £900; M. Smith £118. Received cheques from: R. Pleat £158; L. Fish £370. Received a further loan from B. Barclay by cash £500. 26 29 30 30 Received £614 cash from A. Tom. Started in business with £10,500 cash. Put £9,000 of the cash into a bank account. 3 Bought goods for cash £550. 4 Bought goods on time from: T. Dry £800; F. Hood £930; M. Smith £160; G. Low £510. 5 Bought stationery on time from Buttons Ltd £89. Sold goods on time to: R. Tong £170; L. Fish £240; M. Singh £326; A. Tom £204. Paid rent by cheque £220. 10 Bought fixtures on time from Chiefs Ltd £610. 6. 8. 11 Paid salaries in cash £790. 14 Returned goods to: F. Hood £30; M. Smith £42. 15 Bought van by cheque £6,500. 16 Received loan from B. Barclay by cheque £2,000. Goods returned to us by: R. Tong £5; M. Singh £20. 18 21 Cash sales £145. 24 Sold goods on time to: L. Fish £130; A. Tom £410; R. Pleat £158. We paid the following by cheque: F. Hood £900; M. Smith £118. Received cheques from: R. Pleat £158; L. Fish £370. Received a further loan from B. Barclay by cash £500. 26 29 30 30 Received £614 cash from A. Tom.

Answer rating: 100% (QA)

Income Statement For the month ended Sales 1783 Less Sales return 25 Net sales 1758 Purchase 2950 Pu... View the full answer