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

Required: prepare journal entries for the above transactions, Sleek Ride, a...

Sleek Ride, a company providing limo services, has a December 31 year-end date. For Sleek Ride, the following transactions occurred during the ?rst 10 days of June: a. Purchased, o

Explain r and r-squared- f-test and interpret its value, To decide in what ...

To decide in what zone should be placed a store which sells video-cassettes, the manager of a firm which sells and rents cassettes makes a study to estimate the demand for each sto

Settlement of liabilities-trustee account, SETTLEMENT OF LIABILITIES Wi...

SETTLEMENT OF LIABILITIES Wide powers of compromise are granted to trustees by the Trustee Act. Two or more trustees or a sole trustee, where authorised, may:   1. Pay or allow

The rules of intestacy-executorship law, The rules of intestacy Agricul...

The rules of intestacy Agricultural land, crops and livestock in certain areas of Kenya are not covered by these rules; they are distributed according to the law or custom of t

Accrual Accounting-adjusting entry, What are some examples of adjusting ent...

What are some examples of adjusting entries that are made at the end of the accounting period to bring general lever accounts balance in accordance with GAAP.

Necessary things for receivership-bankruptcy, Necessary things for Receiver...

Necessary things for Receivership If no power to appoint a receiver is given by the terms of issue, the trustee for the debenture holders, or a debenture holder acting on behal

Effect of disclaimer-bankruptcy and liquidation, Effect of disclaimer T...

Effect of disclaimer The trustee may disclaim onerous property consisting of: Land burdened with onerous covenants; Stocks and shares; Unprofitable contracts, or

Determine income statement , Mr. Wong currently running a small manufactur...

Mr. Wong currently running a small manufacturing business.  The Trial Balance of the business at 31 March 2011 is as follows:

Calculate infant mortality rate, Q. Calculate infant mortality rate? Mid...

Q. Calculate infant mortality rate? Mid year population 440000 Late fatal death          29 No. of live birth           5200 No. of infant death      423 No. of mate

#Profitandloss, How other income is different from revenue from normal oper...

How other income is different from revenue from normal operations under the vertical format

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