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Class Practice Work - 02-01-2024

The document provides a complete format for calculating cost of sales, including opening and closing inventory, purchases, returns, and carriage costs. It also includes a trial balance, and requirements to correct the trial balance, draw an income statement, and statement of changes in equity.

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bavanthinil
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54 views5 pages

Class Practice Work - 02-01-2024

The document provides a complete format for calculating cost of sales, including opening and closing inventory, purchases, returns, and carriage costs. It also includes a trial balance, and requirements to correct the trial balance, draw an income statement, and statement of changes in equity.

Uploaded by

bavanthinil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Complete Format of Cost of Sales Working

Cost of Sales
Opening Inventory XXX
Add Purchase XXX
Less Purchase Returns (XXX)
Add Carriage Inwards XXX
Less Purchase Returns (XXX)
Less Carriage Outwards (XXX)
Less Closing Inventory (XXX)
XXX
Carriage Inwards: Cost of transport of goods into a business (delivery cost incurred for purchases)

Carriage Outwards: Cost of transport of goods out to the customers of he business (Delivery cost incurres to deliver
the sold goods to customers - not charged from the customer for delivery)
Trial Balance as at 30th April 2023
$ $
Sales 18,600.00
Purchase 11,556.00
Opening Inventory 3,776.00
Carriage outwards 326.00
Carriage Inwards 234.00
Sales Returns 440.00
Purchase Returns 355.00
Salaries and wages 2,447.00
Motor Expenses 664.00
Rent 576.00
Sundry Expenses 1,202.00
Motor vehicles 2,400.00
Fixtures and Fittings 600.00
Trade Receivable 4,577.00
Trade Payable 3,045.00
Cash at bank (Not Overdraft) 3,876.00
Cash in hand 120.00
Drawings 2,050.00
Equity ?
36,500.00 20,344.00

Hint: Carriage inwards and Carriage Outwards are both Delivery expenses and must be shown on the Debit side of the TB

Requirement
Correct the above TB - show each of the line items on the correct sides.
Find the equity
Balance the TB
Refer to the answer for the corrected TB in the next sheet only after completion of your task.
Draw up Income Statement

Draw up SOCE
Opening Capital was $10,000
You have calculated the Closing Capital in the above corrected TB
The difference between Closing Equity and Opening Equity is the New capital introduced to the business
n on the Debit side of the TB

he business
Trial Balance as at 30th April 2023
$ $
Sales 18,600.00
Purchase 11,556.00
Opening Inventory 3,776.00
Carriage outwards 326.00
Carriage Inwards 234.00
Sales Returns 440.00
Purchase Returns 355.00
Salaries and wages 2,447.00
Motor Expenses 664.00
Rent 576.00
Sundry Expenses 1,202.00
Motor vehicles 2,400.00
Fixtures and Fittings 600.00
Trade Receivable 4,577.00
Trade Payable 3,045.00
Cash at bank 3,876.00
Cash in hand 120.00
Drawings 2,050.00
Equity 12,844.00
34,844.00 34,844.00

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