29 July 2017 07:36

FA2 Managing Financial Records

Chap 2 SOFP & SP/L
Lecturer: Christine Colon, ACCA

Name:
Group: Date:

On 1 October 20X8, Rita Blake started trading as a snack vendor, selling hot and cold food from
a van which she parks in a local lay-by on a main road.

(a) She borrowed $3,200 from her bank, and the interest cost of the loan was $40 per month.
(b) She rented the van at a cost of $1,500 for three months. Running expenses for the van
averaged $450 per month.
(c) She hired a part-time helper at a cost of $150 per month.
(d) Her main business was to sell food to customers who stop their cars by her van, but she also did
some special catering arrangements for business customers, supplying food for office parties.
Sales to these customers were usually on credit.
(e) For the three months to 31 December 20X8, her total sales were:

(i) Cash sales $10,300

(ii) Credit sales $2,000 (all paid by 31 December 20X8)

(f) She purchased food from a local food wholesaler, Best Stores Ever. The cost of purchases in the
three months to 31 December 20X8 was $7,300, and at 31 December she had sold all of it. She
still owed $1,000 to Best Stores Ever for unpaid purchases on credit.
(g) She used her own home for her office work. Telephone and postage expenses for the three
months to 31 December were $220.
(h) During the period she paid herself $330 per month.

We need to prepare a statement of profit or loss for the three months 1 October - 31
December 20X8 and statement of financial position as at 31 December 20X8.

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