Very difficult financial account question, Financial Accounting

Assignment Help:
Ask questSarah is the sole distributor agent in her area for Holmes Kitchen Tiles. Sarah purchases the titles at a trade discount and annually in May receives an agency commission of 1% of the business purchases for the year ended on the previous 31 March.
For several years Sarah has obtained a Gross Profit of 40% on all sales. In a burglary in January 2007 Sarah lost stock costing 4,000 £ as well as many accounting records. However, after careful investigations, the following information has been obtained covering the year ended 31.03.2007

a) Assets and Liabilities at 31.03.2006 are as follows:
Building at cost 10,000
Provision for depreciation 6,000
Motor vehicle at cost 5,000
Provision for depreciation 2,000
Stock at cost 3,200
Trade Debtors (for sales) 6,300
Agency commission due 300
Prepayments (Trade expenses) 120
Balance at bank 4,310
Trade Creditors 4,200
Accrued vehicle expenses 230
b) Sarah will receive an agency commission of 440£ on 01.05.2007
c) Stock, at cost, 31.03.2007 was valued at 3,000 £ more than last year.
d) In October 2006 stock costing 1,000 £ was damaged by damp and had to be scrapped as worthless.
e) Trade Creditors at 31.03.2007 related entirely to goods received whose list prices totalled 9,500 £
f) Discounts allowed amounted to 1,620 £ whilst discounts received were 1,200 £. A further 350 £ of discount received will fall due on the creditor balance.
g) Trade expenses prepaid at 31.03.2007 totalled 80 £
h) Vehicle expenses for the year ended 31.03.2007 amounted to 7,020 £
i) Trade Debtors (for sales) at 31.03.2007 were 6,700 £
j) All receipts are passed through the bank account.
k) Depreciation is provided annually at the rate of 5% on cost for buildings and 20% on cost for motor vehicles.
l) Commission received are paid directly to the bank account
m) In addition to the payments for purchases, the bank payments were as follows:
Vehicle Expenses 6,720 £
Wages 4,300 £
Trade Expenses 7,360 £
n) Sarah is not insured against loss of stock owing to burglary or damage to stock caused by damp
Prepare Sarah’s P&L for the year ended 31.03.2007 and BS on that date.
ion #Minimum 100 words accepted#

Related Discussions:- Very difficult financial account question

Estimate comparative advantage, The only two countries in the world, Alpha ...

The only two countries in the world, Alpha and Omega, face the following production possibilities frontiers (all units measured in tons). Alpha's Production PossibilitiesFrontier

Credit reference agencies and credit scoring, Q. Credit Reference Agencies ...

Q. Credit Reference Agencies and Credit Scoring ? A several organisations example Dun & Bradstreet and Standard & Poor provide credit scores and ratings for companies. These ma

Which investment is riskier, Stock A has an expected return of 9 percent, a...

Stock A has an expected return of 9 percent, a standard deviation of 20 percent, and a market beta of 0.5. Stock B has an expected rate of return of 10 percent, a standard deviatio

Bond yield, If I bought a 10 year bond five years ago for 936.05. The bons ...

If I bought a 10 year bond five years ago for 936.05. The bons make semiannual coupon payments at a rate of 8.4%. If the current price of the bonds is 1,048.77, what is the yield e

What do you mean by earnings per share, Q. What do you mean by earnings per...

Q. What do you mean by earnings per share? Anti-dilution - Condition which may increase computation of EARNINGS PER SHARE (EPS)or decrease loss per share solely due to the incl

Write up the necessary ledger accounts, Question: Agatha Co. is a tradi...

Question: Agatha Co. is a trading company making up its accounts regularly to 31 December each year. At 01 January 2005 the following balances existed in the records of Agat

Calculate the value of bonds, Calculate the value of each of the following ...

Calculate the value of each of the following bond Issuer Face Value Coupon Rate Maturity Bid Yield Bid Price

Vat, 1.discuss how the vat system works 2.list and explain the vat supply c...

1.discuss how the vat system works 2.list and explain the vat supply categories, provide examples in each category write as an essay of 500 words

Drawbacks of voluntary disclosures, Potential advantages to BNM Narrat...

Potential advantages to BNM Narrative reporting will enable BNM to provide information about social, economic and environmental policies. Many users are influenced by an entit

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd