Chapter3S - Financial accounting for decision makers (5th...

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Unformatted text preview: Financial accounting for decision makers (5th edition) Atrill and McLaney Exercise solution Chapter 3 Lee Company Balance sheet as at 31 December 2008 £ Non­current assets Freeho ld premises (+76,000) Plant ­ cost (+50,000 +10,000a) 60,000 depreciat ion (+8,000 +6,000) 14,000 Current assets Inventories (+23,000 –8,000b –63,000c + 59,000d) Trade receivables (+21,000 +95,000c –97,000e –2,000f) Cash at bank (+11,000 –10,000a –11,000b +42,000c +97,000e –61,000g –3,000h –12,000i­4,000j –11,000k) Capital (+102,000 –11,000b –8,000b +35,000) £ 76,000 118,000 46,000 Non­current liabilities Loan from Co mmercial Loan Company (+45,000) 11,000 45,000 17,000 38,000 Current liabilities Trade payables (+26,000 +59,000d –61,000g) Accrued expenses (+1,000h) 188,000 24,000 1,000 188,000 1 Financial accounting for decision makers (5th edition) Atrill and McLaney Exercise solution Income statement for the year ended 31 December 2008 £ Sales revenue (+42,000c +95.000c) Cost of inventories so ld (–63,000c) Gross profit Bad debts (­2,000f) Wages (­12,000i) Electricit y (­3,000h ­1,000h) General expenses (­11,000k) Plant depreciation (­6,000) Operating profit Interest on borrowings (­4,000j) Profit for the year 137,000 (63,000) 74,000 (2,000) (12,000) (4,000) (11,000) (6,000) 39,000 (4,000) +£35,000 2 ...
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