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

What about a foreign-based multinational corporation, Does a state have the...

Does a state have the authority to require a U.S.-based multinational corporation to compute its state taxable income on a worldwide combined reporting basis? What about a foreign-

Statute of limitations, Statute of Limitations - This sets out the period w...

Statute of Limitations - This sets out the period within that actions may be brought upon claims or within which rights may be enforced. As it concerns to tax returns, statute of l

Cost of Loan, Given information: Offered a $20 million commercial loan pri...

Given information: Offered a $20 million commercial loan priced using a 3month LIBOR index+100bp. After some preliminary research, using a money center bank''s swap trading desk

What is lifetime learning credit, Q. What is Lifetime Learning Credit? ...

Q. What is Lifetime Learning Credit? Lifetime Learning Credit - This allows a credit for 20 percent of qualified tuition and fees paid by taxpayer with respect to one or more s

Holding company, define the term of pre-acquisition diviend

define the term of pre-acquisition diviend

Effect of releasing accounting information, The objective of this project i...

The objective of this project is to demonstrate the effect of releasing accounting information concerning profits on the valuation (i.e. share price) of an Australian;listed compan

Debtor management, what is the process to complete my debtor management pro...

what is the process to complete my debtor management project.

System x is judged to have high risk, Allied Managed Care Company is evalua...

Allied Managed Care Company is evaluating two different computer systems for handling provider claims. There are no incremental revenues attached to the projects, so the decision

Writing assignment, you are aceo of acme ,inc located in united states .you...

you are aceo of acme ,inc located in united states .you use the discounted pay back period method and accept all projects that pay back in hree years.a project that will cost 5,500

Goodwill, GOODWILL This is defined as “the difference between the value o...

GOODWILL This is defined as “the difference between the value of a business as a whole and the fair value of its net separable assets”. Goodwill in practical sense is the advant

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