Sole Trader: Simple Balance Sheet Example 2

////Sole Trader: Simple Balance Sheet Example 2

Sole Trader: Simple Balance Sheet Example 2

ZIMSEC O Level Principles of Accounts Notes: Sole Trader: Simple Balance Sheet Example 2

From the following trial balance of J Nhiwatiwa after his first year’s trading, you are required to
draw up a trading and profit and loss account for the year ended 30 June 20X8 as well as a balance sheet as at 30 June 20×8

 $$
DRCR
Sales265,900
Purchases154,870
Rent4,200
Lighting and heating expenses530
Salaries and wages51,400
Insurance2,100
Buildings85,000
Fixtures1,100
Debtors31,300
Sundry expenses412
Creditors15,910
Cash at bank14,590
Drawings30,000
Vans16,400
Motor running expenses4,110
Capital114,202

396,012

396,012

Stock at 30 June 20X8 was $16,280.

Solution

  • The Trading and Profit and Loss Account solution for this question can be found here.

J Nhiwatiwa

Balance Sheet as at 30 June 20×8

 $$
Fixed Assets
Buildings85000
Fixtures1100
Vans

16400

Total Fixed Assets102500
Current Assets
Stock16280
Debtors31300
Bank14590
Total Current Assets62170
Less: Current Liabilities
Creditors

(15910)

Working Capital

(46,260)

148760

Capital (opening balance)114202
Add Net Profit

64558

178760
Less Drawings

30000

148760

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

By |2017-01-17T11:14:43+00:00March 6th, 2016|Notes, Ordinary Level Notes, Principles of Accounts Notes|Comments Off on Sole Trader: Simple Balance Sheet Example 2

About the Author:

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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