Question The following are single-entry transac... - SS2 Accounting Incomplete Records: Preparation of Statement of Affairs - Calculation of Profit Question
Question:
The following are single-entry transactions for Samie Co. for November 2022. You are required to prepare the statement of affairs and derive the calculation of profit.
|
Date |
Transaction Description |
Amount (₦) |
|
Nov. 1 |
Purchased inventory on credit from ABC Suppliers |
50,000 |
|
Nov. 3 |
Sold inventory for cash |
70,000 |
|
Nov. 7 |
Paid rent for the month |
10,000 |
|
Nov. 10 |
Purchased office supplies for cash |
5,000 |
|
Nov. 15 |
Received cash payment from a customer on account |
20,000 |
|
Nov. 18 |
Purchased inventory for cash from XYZ Wholesalers |
35,000 |
|
Nov. 20 |
Paid salary to employees |
30,000 |
|
|
|
|
|
Nov. 24 |
Received payment from a customer in settlement of their account |
15,000 |
|
Nov. 28 |
Paid for repairs and maintenance of equipment |
7,500 |
Answer:
STATEMENT OF AFFAIRS AS AT NOVEMBER 30, 2022
|
Assets |
Amount (₦) |
Liabilities |
Amount (₦) |
|
Cash Inventory Office Supplies Equipment Total Assets |
62,500 35,000 5,000 7,500 110,000 |
Accounts Payable Rent Payable Total Liabilities |
50,000 10,000 60,000 |
CALCULATION OF PROFIT FOR NOVEMBER 2022
|
Transaction |
Debit (₦) |
Credit (₦) |
|
Sales Cost of Goods Sold Rent Expense Office Supplies Expense Salary Expense Repair and Maintenance Expenses Net Profit |
35,000 10,000 5,000 30,000 7,500 87,500 |
70,000 70,000 17,500 |
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