Sole Trader: Simple Statement of Financial Position Example 1

////Sole Trader: Simple Statement of Financial Position Example 1

Sole Trader: Simple Statement of Financial Position Example 1

ZIMSEC O Level Principles of Accounts Notes: Sole Trader: Simple Balance Sheet Example 1

  • From the following trial balance of S Madondo, extracted after one year’s trading, prepare a trading and profit and loss account for the year ended 31 December 20X6 and  a balance sheet as at 31 December 20×6
 DRCR
$$
Sales190576
Purchases119832
Salaries56527
Motor expenses2416
Rent1894
Insurance372
General expenses85
Premises95420
Motor vehicles16594
Debtors26740
Creditors16524
Cash at bank16519
Cash in hand342
Drawings8425
Capital138066

345166

345166

Inventory at 31 December 20X6 was $12,408

Solution

  • The Trading and Profit and Loss Account(Income Statement) for this question can be found here.

S Madondo

Balance Sheet as at 31 December 20×6

$$
Non-current Assets
Premises95420
Motor vehicles

16594

112014
Current Assets
Inventory12408
Debtors26740
Bank16519
Cash

342

56009

168 023

Capital (Balance at the beginning of the year)138066
Add Net Profit

21,858

159,924
Less Drawings

(8425)

151499
Current Liabilities
Creditors16524

168 023

To access more topics go to the Principles of Accounts Notes.

By |2018-08-05T08:45:27+00:00March 6th, 2016|Notes, Ordinary Level Notes, Principles of Accounts Notes|Comments Off on Sole Trader: Simple Statement of Financial Position Example 1

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
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