Category: Sole Trader Accounts

CSEC: January2012, Question #1

11/6/2021

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No. 1(a): Preparation of VIP Enterprises’ Income Statement for the year ended 30th November 2011:

No. 1(b): Preparation of VIP Enterprises’ Statement of Financial Position as at 30th November 2011:

No. 1(c) Calculation of Stock Turnover and Return on Capital Employed (ROCE) ratios:

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Csec: May 2013, Question #1

4/3/2018

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No. 1(a): Preparation of the Income Statement of ConEct for the year ended 31st January, 2012:
Workings:

Calculation of depreciation on delivery van using the reducing balance method: 20% ($60,000 - $12,000) = $9,600. This is the depreciation charge for the Income Statement. The accumulated depreciation balance for the Balance Sheet = $12,000 + $9,600 = $21,600.
The sales commissions outstanding is an amount owed to the business by VeryBerry. It is an asset and will appear under the Current Assets section of the Balance Sheet. The total sales commission for the Income Statement for the year ended 31st January, 2012 will equal the amount received plus the amount owing. That is $115,500 + $14,100 = $129,600.
The rent expense needs to be adjusted for the rent owing. Therefore the rent expense figure for the Income Statement = $13,300 + $3,000 = $16,300. The outstanding rent is an accrual and will appear under the Current Liabilities section of the Balance Sheet.
The insurance expense needs to be adjusted for the prepaid insurance. Therefore the insurance expense figure for the Income Statement = $7,100 - $1,800 = $5,300. The prepaid insurance is an asset and will appear under the Current Assets section of the Balance Sheet.

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CSEC: January2012, Question #1

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