STUDY UNIT 15

FINANCIAL STATEMENTS
OF A
SOLE PROPRIETORSHIP

1.

EXERCISE ONE

HATCH TRAINERS
GENERAL JOURNAL FOR MARCH 2009
Inventory: Stationery
Stationery
Stationery on hand on 31 March 2009
Credit Losses
J Jolly (Debtors Control)
J Jollys account written off as irrecoverable
Credit Losses
Allowance for Credit Losses
(75 200 200 x 5%) Credit Loss brought into acc.
Water & Electricity
Accrued Expenses
Electricity still owing
Accrued Income
Commission Income
Commission earned not yet received
Prepaid Expenses
Insurance
Insurance prepaid for 3 months
Bank
Capital
Additional capital invested by owner

2 500
2 500
200
200
3 750
3 750
750
750
3 600
3 600
1 200
1 200
200 000
200 000

HATCH TRAINERS
GENERAL LEDGER
PACKING MATERIAL
2010
Dec

31

Balance

b/d

4 700

2010
Dec

31

Inventory: Pack
Material
Profit & Loss

GJ

980

GJ

3 720
4 700

Prepaid Expenses

GJ

400

Profit & Loss

GJ

1 600
2 000

Balance

b/d

5 000

Accrued Income

GJ

1 000
6 000

4 700

ADVERTISING
2010
Dec

31

Balance

b/d

2 000

2010
Dec

31

2 000

INTEREST ON INVESTMENTS
2010
Dec

31

Profit & Loss

GJ

6 000
6000

2010
Dec

31

TELEPHONE
2010
Dec

31

Balance

b/d

1 400

Accrued Expenses

GJ

165
1 565

2010
Dec

31

Profit & Loss

GJ

1 565

INVENTORY PACKING MATERIAL

2010
Dec

31

Packing Material

GJ

980

HATCH TRAINERS
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE
YEAR ENDED 31 MARCH 2009
Revenue (960 000 12 000 3 500)
Cost of Sales
Opening Inventory
Purchases (540 000 4 000 4 700)
Carriage on Purchases
Closing Inventory
GROSS PROFIT
Other Income
Commission Income (33 200 + 3 600)
Rent Income
Distribution, Administrative and Other Expenses
Carriage on Sales
Insurance (39 200 1 200)
Credit Losses (3 000 + 200 + 3 750)
Stationery (14 500 2 500)
Salaries
Water and Electricity (26 000 + 750)
Finance Costs
Interest on Overdraft
Comprehensive Income for the year

1 565

944 500
(554 300)
34 000
531 300
18 000
(29 000)
390 200
48 800
36 800
12 000
(304 300)
15 600
38 000
6 950
12 000
205 000
26 750
(800)
800
R133 900

HATCH TRAINERS
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2009
Capital balance at the beginning of the year
R650 000
Additions extra capital contribution
200 000
Total Comprehensive Income for the year
133 900
Drawings
(45 000)
Capital balance at the end of the year
R938 900

2.

EXERCISE TWO (Periodic)

NAIDO TRADERS
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2007
299 400
Revenue (300 700 1 300)
Less: Cost of Sales
Opening Inventory
Net Purchases (139 200 1 400 - 500)
Carriage on Purchases
Closing Inventory -1
GROSS PROFIT
Other Income
Rent Income (12 000 1 200) -4
Distribution, Administrative and Other Expenses
Salaries and Wages
Carriage on Sales
Packing Material
Credit Losses
Stationery
Insurance (1 800 200) - 5
Printing (1 700 + 1 500) - 6
Depreciation (4 100 + 700) - 2
Finance costs
Interest on Mortgage Loan (6 300 + 2 100) - 3
Profit/total comprehensive income for the year

(138 400)
16 500
137 300
3 000
(18 400)
161 000
10 800
10 800
(115 700)
93 000
1 900
4 300
400
6 500
1 600
3 200
4 800
(8 400)
8 400
R47 700

NAIDO TRADERS
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED
30 JUNE 2007
Balance as at 1 July 2006

72 600

Profit/total comprehensive income for the year

47 700

Drawings

(4 100)

Balance as at 30 June 2007

R116 200

3.

EXERCISE THREE (PERPETUAL)

CALCULATION OF PROFIT
Sales/Revenue
Income from Services Rendered) (700 000 15 000)
Less Cost of Sales
Gross Profit
Distribution, Admin and other expenses
Interest Income
Administrative and general expenses (150 000 Stationery 2 000)
Depreciation (150 000 + 70 000)
Profit/Net comprehensive income for the year

386 000
685 000
(200 000)
871 000
368 000
2 500
(148 000)
(220 000)
R505 500

HOLMES DETECTIVES - STATEMENT OF CHANGES IN EQUITY FOR THE YEAR

ENDED - 30 APRIL 2007
Capital balance at beginning of year
Add Profit/Net comprehensive income for the year
Less Drawings (98 000 + 1 500)
Capital balance at end of year

400 000
505 500
(99 500)
R806 000

HOLMES DETECTIVES - STATEMENT OF FINANCIAL POSITION

AS AT 30 APRIL 2007
ASSETS
NON-CURRENT ASSETS
Property Plant and Equipment
(750 000 + 300 000 300 000 170 000))
Investment (5% fixed deposit at Mutual Bank)
CURRENT ASSETS
Inventory (125 000 + 2 000)
Trade & other Receivables (30 000 + 2 500)
Cash and Cash Equivalents (45 000 1 500)
TOTAL ASSETS
TOTAL EQUITY & LIABILITIES
EQUITY
Capital (400 000 + 505 500 99 500)
CURRENT LIABILITIES
Trade and Other Payables (12 000 + 15 000)
TOTAL EQUITY AND LIABILITIES

630 000
580 000
50 000
203 000
127 000
32 500
43 500
R833 000

806 000
806 000
27 000
27 000
R833 000