1. ACT 110 Is EASY POP! I STILL BELIEVE Because, The Presence of Faith does not mean the Absence of Doubt!

2. Sole Proprietorship’s Financial Statements Exercises

3. Michael Bolton Trading and Profit and Loss Account For the period ended February 28, 1998 $$ Add Purchases (6,500) Sales61,250 Insurance (26,300) Net Profit c/d (13,825) Less Cost of Goods Sold Less Expenses Less Return Inwards (400) Net Sales 60,850 Opening Stock4,500 28,500 Less Return Outwards(200) Net Purchases28,300 Total Stock Available 32,800 Less Closing Stock Cost of Goods Sold Gross Profit34,550 Less Prepaid Expenses 450 (25) 400 Salaries 9,950 550 2,700 Add Commission Received 800 35,350 Discount Allowed 425 Rent Add Rent Owing 2,150 Bad Debt 325 Total Expenses 21,525 QUESTION 1 Workings

4. Michael Bolton Balance Sheet As at February 28, 1998 $ Premises27,000 Stock 25 Debtors 3,100 Bank 6,500 58,225 Fixed Assets Plant14,850 Office Furniture3,500 45,350Total Fixed Assets Current Assets 12,875 Total Current Assets 58,225 Capital and Liabilities Total Assets 33,000 Capital 21,525Add Net Profit (4,750) Less Drawings 49,775Closing Capital Prepayments 3,250 54,525 Long Term Liabilities Bank Loan 5,000 Current Liabilities Creditors Accrual 2,900 550 3,450 QUESTION 1 Workings

5. Baby Face Trading and Profit and Loss Account For the period ended December 31, 1997 $$$ Add Purchases (8,800) Sales 60,900 (43,800) Less Cost of Goods Sold Opening Stock6,300 46,500 Less Drawings(200) Net Purchases46,300 Total Stock Available52,600 Less Closing Stock Cost of Goods Sold Gross Profit17,100 Add Discount Received814 17,954 QUESTION 5 Workings Add Decrease in Provision 40

6. Baby Face Trading and Profit and Loss Account For the period ended December 31, 1997 $$$ Car Expense Net Profit c/d (12,543) Less Expenses Less Drawings 848 (106) 212 Wages & Salaries 318 8,924 17,954 Repairs to Building 318 General Expenses Add Owing 8,606 Bad Debts 359 Total Expenses 5,411 QUESTION 5 Workings (650)Less Improvements198 Discount Allowed 1,061 Rates & Insurance248 (45)Less Prepayment203 1,586

7. Baby Face Balance Sheet As at December 31, 1997 $ Land & Building10,650 Stock (100) Debtors 8,800 Bank 950 Fixed Assets Furniture & Fittings 1,460 Motor Car 13,060Total Fixed Assets Current Assets Total Current Assets Total Assets Less Provision 5,113 QUESTION 5 Workings Net Debtors 5,213 Prepayments 45 540 14,498 27,558

8. Baby Face Balance Sheet As at December 31, 1997 $ Opening Capital20,500 Current Liabilities 318 Creditors 25,911 Capital and Liabilities Add Net Profit 5,411 (2,706) Less Drawings Closing Capital Total Capital and Liabilities Accruals 4,353 QUESTION 5 Workings Total Current Liabilities 4,305 27,558 23,205