华南俳烁实业有限公司

Example: Continuing from the illustration above, prepare the SFP at the end of each day after accounting for the transactions below:

Day 6 Sells half of the goods bought on Day 5 on credit for $250.

Day 7 Pays $200 to his supplier.

Day 8 Receives $100 from a customer.

Day 9 Proprietor draws $75 in cash.

Day 10 Pays rent of $40 in cash.

Day 11 Receives a loan of $600 repayable in two years.

Day 12 Pays cash of $30 for insurance.

Your starting point is the SFP at the end of Day 5, from the illustration above.

Prepare: SFP at the end of Day 12

I.S. for the first 12 days of trading.

Solution:

Day 6 Assets (Inventory $ 200) = Capital + Liabilities

( Motor$ 400) (Beginning$1,000)($400)

(Cash $700)   (Profit $150)

(A/Receivable$250)

Day 7 Assets (Inventory $ 200) = Capital + Liabilities

( Motor$ 400) (Beginning$1,000)($200)

(Cash $500) (Profit $150)

(A/Receivable$250)

Day 8 Assets (Inventory $ 200) = Capital + Liabilities

( Motor$ 400)  (Beginning$1,000)($200)

(Cash $600)   (Profit $150)

(A/Receivable$150)

Day 9 Assets (Inventory $ 200) = Capital + Liabilities

( Motor$ 400)  (Beginning$1,000)($200)

(Cash $525)  (Profit $150)

(A/Receivable$150) (Drawing $75)

Day 10 Assets (Inventory $ 200) = Capital + Liabilities

( Motor$ 400)  (Beginning$1,000)($200)

(Cash $485)  (Profit $110)

(A/Receivable$150) (Drawing $75)

Day 11 Assets (Inventory $ 200) = Capital + Liabilities

( Motor$ 400)  (Beginning$1,000)($200)

(Cash $1,085)  (Profit $110) ($600)

(A/Receivable$150) (Drawing $75)

Day 12 Assets (Inventory $ 200) = Capital + Liabilities

(Motor$ 400) (Beginning$1,000)($200)

(Cash $1,055)  (Profit $80 ) ($600)

(A/Receivable$150) (Drawing $75)

Avon

Statement of Financial Position as at end of Day 12