John Timms is the sole owner of Sunshine Wholesale Traders, a company which buys fruit from farmers and sells it to supermarkets. All goods are collected from farms and delivered to supermarkets on the same day, so no inventories (stocks) of fruit are held. The accounting records of Sunshine Traders at 30 June Year 2, relating to the year then ended, have been summarized by John Timms as follows:
|
£ |
|
|
Fleet of delivery vehicles, after deducting depreciation |
35,880 |
|
Furniture and fittings, after deducting depreciation |
18,800 |
|
Trade receivables |
34,000 |
|
Bank deposit |
19,000 |
|
Trade payables (creditors) |
8,300 |
|
Sales |
294,500 |
|
Cost of goods sold |
188,520 |
|
Wages and salaries |
46,000 |
|
Transport costs |
14,200 |
|
Administration costs |
1,300 |
|
Depreciation of vehicles, furniture and fittings |
1,100 |
Required
(a) Identify each item in the accounting records as either an asset, a liability, or ownership interest (identifying separately the expenses and revenues which contribute to the change in the ownership interest).
(b) Prepare a balance sheet at 30 June Year 2.
(c) Prepare a profit and loss statement for the year ended 30 June Year 2.