Question

Question 3: From the accounts in question 2 above prepare a statement of profit or loss position for the period ended 30 June 2020

Type of Account	$
Accounts Receivable	46500
Provisions	50000
Prepayments	1200
Sales Revenue	455000
Plant and Equipment	220000
Other Current Assets	11000
Borrowings	120000
Interest on Borrowings E	6000
Accumulated Depreciation	48500
Accounts Payable	26000
Share Capital	450000
Land and Buildings	339000
Inventory	78000
Two Year Term Deposit	98500
Cash at Bank	32000
Retained Earnings	?
Salaries expense	215000
Salaries Accrued	12500
Insurance Expense	9000
Annual Depreciation	22000
Utilities Expense	8500
Selling Expenses	25000

Answer 1

Answer:

Statement showing trading, profit or loss position for the period ended 30 June 2020
Particulars	Amount	Amount
Revenues and Gains:
Sales revenue	4,55,000
Total Gains and Revenues (a)		4,55,000
Expenses and Losses:
Selling expenses	25,000
Interest on Borrowings E	6,000
Salaries expense	215,000
Insurance Expense	9,000
Annual Depreciation	22,000
Utilities Expense	8,500
Total Expenses and Losses (b)		285,500
Income from operations (a-b)		169,500
Loss from discontinued operations		0
Net Income		169,500