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4 marksIncome Statements and Balance Sheets for Sole Traders

CSEC Principles of Accounts · May/June 2015 · Paper 2 · Question 3(a)(i)

Seris Lann, a sole trader, provides financial figures for the year ended 31 December 2014 to support a bank loan request for computers.

Prepare an Income Statement for the year ended 31 December 2014, showing clearly the amount for Cost of goods sold.

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Other parts of this question

  1. 3(a)(ii)In the Income Statement, show clearly the amount for Insurance expense.[2 marks]
  2. 3(a)(iii)In the Income Statement, show clearly the amount for Miscellaneous expenses.[2 marks]
  3. 3(b)(i)Prepare a list showing Total non-current (fixed) assets as at 31 December 2014, showing clearly how you arrived at the dollar amount.[2 marks]
  4. 3(b)(ii)Prepare a list showing Total current assets as at 31 December 2014, showing clearly how you arrived at the dollar amount.[2 marks]
  5. 3(b)(iii)Prepare a list showing Total current liabilities as at 31 December 2014, showing clearly how you arrived at the dollar amount.[2 marks]
  6. 3(c)Name and use an appropriate ratio to decide whether Seris Lann should or should not be given the bank loan. (Show your calculation and give your reason.)[4 marks]
  7. 3(d)State ONE advantage and ONE disadvantage of using a computer system to maintain accounts.[2 marks]

More practice: the rest of this paper · more Income Statements and Balance Sheets for Sole Traders questions · all CSEC Principles of Accounts past papers