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Sole Trader Final Acounts Notes

Accounting Notes > Principles of Accounting Notes

This is an extract of our Sole Trader Final Acounts document, which we sell as part of our Principles of Accounting Notes collection written by the top tier of Acca students.

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Standard Format of Income statement of a sole trader: Mr. Memon Trading and Profit and loss account For the Year Ended December 31, 20XX

PS
Sales Less: Sales return Net Sales Less: Cost of goods sold: Opening inventory Add: purchases Add: carriage in Less: Purchase return Goods available for sale Less: Closing inventory Gross Profit Less: Overheads / Expenses: Depreciation Rent Wages and salaries Interest on loan Sundry expenses Insurance Add: Other Income: Discount received Rent income Net Profit before tax Less: Taxation Net Profit after tax

PS
XXX (X)

PS

XXX XX XX XX (X) XX (X)

(XX) XXX XX

XX XX XX XX XX

(XX)

XX XX

XX XXX (XX) XXX

*** Only those expenses and revenues will go into TPL which belongs to the given accounting period. (Remember Matching/accruals concept)

Standard Format of Balance sheet of a sole trader: Mr. Memon Principle of accounts by Sir Qubair Salim Chartered Certified Accountant. Contact# 0336-2311246 Email: qubair accamail.com

Balance sheet as on December 31, 20XX

Noncurrent assets:

Cost
PS (000)

Accumulated dep.
PS (000)

XX XX XX XX XX

--XX XX XX XX

NBV
PS

(000) Land Building Machinery Motor vehicle Current Assets: Inventory Receivable Less: Provision for bad debt Prepayments Cash/Bank Less: Current Liabilities: Payables Tax liability

XX XX XX XX XX

XX XX (X)

XX XX XX

XX XX XX

(XX)

Working capital

XX Less: Noncurrent liabilities: Bank loan

(X)

Net Assets

XXX Financed by: Capital Opening capital Add: Profit Less: Drawings Closing capital

XXX XX (XX) XXX

*** The two boxes should be match with each other, then the balance sheet is said to be balanced.

Mcqs:

1. Given the following data, calculate the value of the firm's capital: Non-current assetsPS4,000; inventory PS350; accounts receivable PS180; cash at bank PS650 and accounts payable PS280. A. PS4,900 B. PS5,000 C. PS5,180

Principle of accounts by Sir Qubair Salim Chartered Certified Accountant. Contact# 0336-2311246 Email: qubair accamail.com

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