Question 3 The following trial balance has been extracted from the accounts of Andrew's supermarket, as...

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Question 3 The following trial balance has been extracted from the accounts of Andrew's supermarket, as at 31 March 2023. Capital Sales Purchases Inventories (opening) Receivables Payables Wages & salaries Drawings Motor expenses & petrol Rent Rates Light & heat expenses Other expenses Motor vehicle Building Bank overdraft Total You have been given the following information: Dr £ 105,000 9,000 4,000 31,000 19,000 1,000 6,200 1,800 1,800 1,700 8,000 50,000 238,500 Dr £ 36,000 168,000 5,000 29,500 238,500 Inventory as at 31 March 2023 has been valued at £11,500. 4 months' rent has been paid in advance for the period ending 30 June 2023. The total amount of prepaid rent is £2,000. Motor expenses & petrol owing £100. An accrual of £150 is required in respect of light and heat expenses. Andrew's supermarket made credit sales of £2,000 on February 2023 and these sales have not been recorded in the supermarket accounts. Required: a) Create the Statement of Profit/Loss and Statement of Financial Position for Andrew's supermarket. (19 marks) (2 marks) b) Explain what the statement of financial position reveals about a company. c) List TWO differences between preference shares and debentures. (4 marks) Question 3 The following trial balance has been extracted from the accounts of Andrew's supermarket, as at 31 March 2023. Capital Sales Purchases Inventories (opening) Receivables Payables Wages & salaries Drawings Motor expenses & petrol Rent Rates Light & heat expenses Other expenses Motor vehicle Building Bank overdraft Total You have been given the following information: Dr £ 105,000 9,000 4,000 31,000 19,000 1,000 6,200 1,800 1,800 1,700 8,000 50,000 238,500 Dr £ 36,000 168,000 5,000 29,500 238,500 Inventory as at 31 March 2023 has been valued at £11,500. 4 months' rent has been paid in advance for the period ending 30 June 2023. The total amount of prepaid rent is £2,000. Motor expenses & petrol owing £100. An accrual of £150 is required in respect of light and heat expenses. Andrew's supermarket made credit sales of £2,000 on February 2023 and these sales have not been recorded in the supermarket accounts. Required: a) Create the Statement of Profit/Loss and Statement of Financial Position for Andrew's supermarket. (19 marks) (2 marks) b) Explain what the statement of financial position reveals about a company. c) List TWO differences between preference shares and debentures. (4 marks)

Answer rating: 100% (QA)

Step 13 1 Statement of profit loss Cost of good sold op Inventory 9000 purchase 105000 Wages 31000 e... View the full answer