Accountancy is Fun Ltd

Balance @ beginning 6/30/2020 $

Transactions/Adjustments

Credit purchases of Stock

Cash Sales
Credit Sales
Paid Accounts Payable
Paid Wages
Wages owing 30th June 2020
Rent paid $6,500 Rent expense is $500 per month
Collection from Debtors
Interest paid on loan
Insurance expense NOT invoiced
Subscription paid $3,000 - April 2021 to Jan 2022
Staff bonues provided for as at 30th June 2021
Electricity for the period March to June 2021
Depreciation of Furniture and Fittings - 10%
Bad debt written off
Dividends provided and paid for

Cost of Sales Adjustment

 $
Balance @ end 6/30/2021
 Total Assets

Current Assets

Bank Accounts Prepaid

Receivable Inventory Expenses
(Debtors)
$3,500 $12,500 $10,000

$27,500.00
$25,000.00
$32,500.00
($12,500.00)
($10,000.00)

($6,500.00) $500.00
$15,000.00 ($15,000.00)
($750.00)

($3,000.00) $2,100.00

($1,500.00)
($2,000.00)

($15,000.00)
 $8,750.00 $28,500.00 $22,500.00 $2,600.00

Cost of Sales Adjustment

Stock at beginning $10,000.00

plus purchases $27,500.00
= Available for sale
minus stock at end

= Cost of Goods Sold

 =

Non-Current Assets

Furniture Furniture & Fittings

& Fittings Depn
@ 10% p.a.
$50,000 ($5,000)

($5,000.00)
$50,000.00 ($10,000.00)

$102,350.00

$37,500.00
($22,500.00)

15,000.00
 Liabilities

Current Liabilities

Accounts
Accrued Accrued Payable
Expenses Expenses Creditors
Other Wages (Stock)
$0 $500 $7,000

$27,500.00

($12,500.00)
($500.00)
$1,500.00

$2,500.00

$10,000.00
$2,000.00
 $4,500.00 $11,500.00 $22,000.00

$102,350.00
 + Owners Equity

Non-Current Liabilities Owners Equity

Loan Capital

$18,500 $40,000

($2,000.00)
$18,500.00 $38,000.00

Current Year Profit >>>> >>>

Owners Equity

Owners Equity

Profit/Loss

$5,000

$25,000.00 Sales revenue

$32,500.00 Sales revenue

($9,500.00) Wages Exp

($1,500.00) Wages Exp
($6,000.00) Rent Exp

($750.00) Interest Exp

($2,500.00) Insurance Exp
($900.00) Subscription Exp
($10,000.00) Wages or Bonus Expense
($2,000.00) Electricity Exp
($5,000.00) Dep'n Expense
($1,500.00) Bad debts exp
Either through capital or separate column

($15,000.00) COGS
$7,850.00

$2,850.00
 Accountancy is Fun Ltd
Income Statement for the period ended 30th June 2021

Income

Sales
Cash Sales $25,000.00
Credits Sales $32,500.00

less
Cost of Goods Sold

Gross Profit

Expenses
Rent Expense ($6,000.00)
Wages Expense ($21,000.00)
Interest ($750.00)
Depreciation Expense ($5,000.00)
Bad Debts Expense ($1,500.00)
Subscription ($900.00)
Insurance ($2,500.00)
Electricity ($2,000.00)

Total Other Expenses

Profit and Loss

 $57,500.00

($15,000.00)

$42,500.00

($39,650.00)

$2,850.00
 Accountancy is Fun Ltd
Statement of Financial Position as at 30th June 2021

Current Assets Current Liabilities

Accrued Expenses - Wages

Bank $8,750.00 Accrued Expenses - Other
Accounts Receivable $28,500.00 Accounts Payable
Stock $22,500.00
Prepaid Expenses $2,600.00 $62,350.00 Non Current Liabilities

Non-Current Assets Loan

Furniture and Fittings $50,000.00 Total Liabilities

Accum Dep'n ($10,000.00) $40,000.00
Owners Equity

Capital @ beginning
Retained Earnings @ beginning
Drawings/Dividends
Profit and Loss (current year)

Total Assets $102,350.00 Total Liabilities & Owners Equity

n Ltd
at 30th June 2021

nses - Wages $11,500.00

nses - Other $4,500.00
$22,000.00 $38,000.00

$18,500.00 $18,500.00

$56,500.00

$40,000.00
ings @ beginning $5,000.00
($2,000.00)
s (current year) $2,850.00 $45,850.00

s & Owners Equity $102,350.00

WORKSHEET

Balance @ beginning

transactions/adjustments
1.Total Sales - $800 000 (70% of these total sales were cash sales)
2.Purchase of inventory with cash - $350 000
3.Used $30 000 on advertising for a marketing campaign.
4.DJ purchased a motor vehicle for his wife using $90 000 of his own mon
5.Customers who originally purchased inventory on credit made payments
6.Paid Wages - $90 000.
6.b.Wages still owing - $15 000.
7.Payments to suppliers - $70 000
8.Interest on the loan – 2.5% per annum. DJ has only paid half the interest
Subscription paid $2,700 - May 2021 to Jan 2022
Insurance expense NOT invoiced - $3000
9.Bad Debts - $12 000
10.Straight-line depreciation
11.DJ withdrew $15,000 for his own use.
Stock on hand at 30 June 2021 - $130 000/COGS

Balance @ end
COGS Workings
Opening Inventory
Plus Purchases
Less Closing Inventory
COGS
 Assets

Current
Cash at Accounts Prepaid
Inventory
Bank Receivable Expenses
45,000 120,000 155,000 30,000

560,000 240,000
-350,000 350,000
-30,000

220,000 -220,000
-90,000

-70,000
-375
-2,700 2,100

-12,000

-15000
-375,000

296,925 128,000 130,000 2,100

 632,025

155,000
350,000
-130000
375,000
 Liabilities & O

Non-current Current
Acc. Accounts Accrued Accrued
P&E
Dep'n Payable Wages Interest
120,000 -40,000 105,000 20,000

-20,000
15,000
-70,000
375

-5,000

120,000 -45,000 35,000 15,000 375

Liabilities & Owners Equity

Non-Current Equity
Accrued Retained
Loan Capital Drawings
Insurance Earnings
30,000 240,000 35,000

800,000

-30,000

-70,000
-15,000

-750
-600
3,000 -3,000
-12,000
-5,000
-15,000
-375,000

3,000 30,000 240,000 -15,000 323,650

632,025
 Notes

Sales Revenue

Advertising Expense

Wages Expense
Wages Expense

Interest Expense
Subscription Expense
Insurance Expense
Bad Debts Expense
Depreciation Expense

COGS
 DJ Enterprises
Statement of Profit or Loss for the year ended 30 June 2021

Sales Revenue
Credit Sales ###
Cash Sales ### 800,000

Less: Cost of Goods Sold ###

Gross profit 425,000

Less: Operating Expenses

Advertising Expense (30,000)
Wages Expense (85,000)
Interest Expense (750)
Subscription Expense (600)
Insurance Expense (3,000)
Bad Debts Expense (12,000)
Depreciation Expense (5,000) ###

Net Profit 288,650

d 30 June 2021
 DJ Enterprises
Balance Sheet
As at 30 June 2021

ASSETS
CURRENT ASSETS
Cash at bank 296,925
Accounts receivable 128,000
Inventory 130,000
Prepaid Expenses 2,100
TOTAL CURRENT ASSETS 557,025
NON-CURRENT ASSETS
Plant and equipment. 120,000
Less: Accumulated depreciation -45,000
TOTAL NON-CURRENT ASSETS 75,000
TOTAL ASSETS 632,025

LIABILITIES
CURRENT LIABILITIES
Accounts payable 35,000
Accrued wages 15,000
Accrued interest 375
Accrued insurance 3,000
TOTAL CURRENT LIABILITIES 53,375
NON-CURRENT LIABILITIES
Loan 30,000
TOTAL NON-CURRENT LIABILITIES 30,000
TOTAL LIABILITIES 83,375
NET ASSETS 548,650

OWNERS’ EQUITY
Capital 240,000
Retained earnings (beg) 35,000
plus: Profit 288,650
less: Drawings -15,000
Retained earnings (end) 308,650
TOTAL OWNER’S EQUITY 548,650