2. 外语
  3. After the first year of trading, Mr. Wong provided you the following list of ledger balances as at 31 December 2003: ＄ Stock, 1

After the first year of trading, Mr. Wong provided you the following list of ledger balances as at 31 December 2003: ＄ Stock, 1

admin2011-01-14  146
问题 After the first year of trading, Mr. Wong provided you the following list of ledger balances as at 31 December 2003:
＄
Stock, 1 January 2003 3,300
Stock, 31 December 2003 25,200
Sales 160,000
Purchases 100,000
Premises 142,600
Fixtures & Fittings 45,200
Motor Vehicles 42,500
Returns Inwards 1,500
Returns Outwards 2,600
Carriage Inwards 1,000
Carriage Outwards 250
Debtors 30,500
Creditors 41,500
Wages 17,495
Rent and Rates 3,900
Lighting & Heating 18,455
Insurance 10,600
Motor Vehicle Expenses 2,400
Cash at Bank 4,700
Bank Loan 29,000
Loan Interest 2,300
Drawing 6,400
You are further given the following information:
1.Wages owing are ＄550.
2.Prepaid rent is ＄600.
3.Depreciation of Fixtures & Fittings is 10% per annum on cost.
4.Depreciation of Premises is based on a 10-year lease.
5.Depreciation of Motor Vehicles is 50% life using the reducing balance method.
6.Stock taken for Mr. Wong’s own use is ＄1,100. Such a transaction has not yet been recorded.
7.It is estimated that one-third of the driving time is for private purposes.
8.5% of the outstanding accounts at the year end is thought to be uncollectible.
9.There was no error made in the recording of business transactions for the year.
Required:
(a)Prepare a Trading and Profit and Loss Account for the year ended 31 December 2003.
(b)Prepare a Balance Sheet as at 31 December 2003.
(c)Explain the meaning and the significance of Working Capital.
选项
答案(a) Mr. Wong’s Business Trading and Profit and Loss Account for the year ended 31 December 2003 ＄ ＄ ＄ Sales 160,000 Less: Returns inwards 1,500 Net sales 158,500 Less: Cost of goods sold Opening stock 3,300 Purchases 100,000 Carriage inwards 1,000 101,000 Less: Returns outwards 2,600 98,400 Less: Stock drawing 1,100 97,300 100,600 Less: Closing stock 25,200 75,400 Gross Profit 83,100 Less: Expenses Wages (17,495 + 550) 18,045 Rent and Rates (3,900-600) 3,300 Lighting & Heating 18,455 Insurance 10,600 Motor Vehicle Expenses (2,400×2/3) 1,600 Loan Interest 2,300 Carriage Outwards 250 Bad debts 1,525 Depreciation: —Premises (142,600×1/10) 14,260 —Fixtures & Fittings (45,200×10%) 4,520 —Motor Vehicle (42,500×50%) 21,250 96,105 (13,005) (b) Mr. Wong’s Business Balance Sheet as at 31 December 2003 ＄ ＄ ＄ Cost Dep NBV Fixed Assets Premises 142,600 14,260 128,340 Fixtures & Fittings 45,200 4,520 40,680 Motor vehicles 42,500 21,250 21,250 230,300 40,030 190,270 Current Assets Stock 25,200 Debtors 30,500 Less: Provision for bad debts 1,525 28,975 Prepaid rent 600 Cash at bank 4,700 59,475 Less: Current Liabilities Creditors 41,500 Accrued wages 550 42,050 Net Current Assets 17,425 Total Net Assets 207,695 Represented By Capital (Workings 1) 200,000 Less: Net Loss 13,005 186,995 Less: Drawings (6,400+1,100+1/3×2,400) 8,300 178,695 Bank loan 29,000 207,695 Workings 1: The initial capital contributed by Mr. Wong is determined by drawing up the following trial balance: Dr Cr ＄ ＄ Stock 3,300 Sales 160,000 Purchases 100,000 Premises 142,600 Fixtures & Fittings 45,200 Motor Vehicles 42,500 Returns Inwards 1,500 Returns Outwards 2,600 Carriage Inwards 1,000 Carriage Outwards 250 Debtors 30,500 Creditors 41,500 Wages 17,495 Rent and Rates 3,900 Lighting & Heating 18,455 Insurance 10,600 Motor Vehicle Expenses 2,400 Cash at Bank 4,700 Bank Loan 29,000 Loan Interest 2,300 Drawings 6,400 Capital (Balance Figure) _____ 200,000 433,100 433,100 (c) Working capital is defined as the excess of current assets over current liabilities. It is one of the important financial indicators of the liquidity position of a business entity. A positive working capital position means that a business is able to manage its affairs to such a state that current assets are sufficiently ready to meet the requirement of settling the debts which are to be due within one year. In other words, a business is to be solvent in the short term if there is a positive working capital. This indicates that the liquidity position of a business is financially sound. However, a positive working capital does not necessarily indicate that the business is solvent in the long term or in a forced liquidation.
解析
转载请注明原文地址:https://www.kaotiyun.com/show/5xYd777K
0

中级（会计）

原金融专业英语（FECT）

金融英语（FECT）

相关试题推荐
随机试题
最新回复(0)