Question

Prepare the Statement of Financial Position(Balance Sheet) based on the Trial Balance

Particulars	Debit	Credit
	$	$
Debtors	39,800
Creditors		30,640
Discount Received		4,280
Bank	12,040
Capital		49,500
Purchases and Sales	188,136	292,920
Returns	3,300	5700
Stock at 1 January 2019	32,020
Wages and salaries	37,030
Rent and rates	11,200
Motor Vehicles	20,000
Provision for depreciation on motor vehicles		4,000
Machinery	10,000
Provision for depreciation on Machinery		1,000
Office expenses	5,424
Motor expenses	3,468
Drawings	25,622
	388,040	388,040

Answer 1

Financial statement

Financial position (balance sheet)

Liabilities	$	Assets	$
Opening Capital	49,500	Motor vehicle	20,000
Add: Net income*	22,322	less: provision for depreciation	(4,000)
Less: Drawing	(25,622)	book value	16,000
Closing capital	46,200	Machinery	10,000
		less: provision for depreciation	(1000)
Creditors	30,640	book value	9,000
		Debtors	39,800
		Bank	12,040
	76,840		76,840

Income statement :

	$		$
Opening inventory	32,020	Sales	292,920
Purchases	188,136	Less: returns	(3,300)
Less: returns	(5,700)	Net sales	289,620
Net Purchases	182,436
Wages and salaries	37,030
Gross profit	$ 38,134
	$ 289,620		$ 289,620
Rent and rates	11,200	Gross profit	38,134
Office expenses	5,424	discount received	4,280
Motor expenses	3,468
Net income*	$ 22,322
	$ 42,414		$ 42,414

* Assuming no closing inventory.