Prize money earned over the trading period amounted to 400,000. Prize money is always paid in cash
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Expenditure
The wage bill for her trainer, dietician and personal minders is paid one month in arrears and came to £30,000 each month.
Tournament entry fees, all paid, totalled £10,000. These included her entry fee of £2,000 for next month's Champion of Champions event in Edinburgh. Travelling expenses for the nine-month period came to £95,000. All bills had been settled.
On July 1st 20x7, Nanna purchased, in cash, a dozen graphite shafted tennis racquets worth a total of £24,000. These will last her three years but they will then all have to be replaced. Nanna would like you to highlight these as a non-current asset in her business accounts.
Nanna paid £5,000 during the period for cat-gut strings and labour to repair her racquets. In addition, she still owes her stringer £1,000 for work carried out at the Toyota classic event in February 20x8.
Financing
Kovakourni Ltd was set up when three investors each bought 20,000 £1 shares in the company. The investors do not anticipate receiving a dividend in the first trading period.
Question
Use information above to construct a balance sheet as at 31st March 20x8.
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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