The following information relates to the books of accounts of Adom Ltd. Trading, profit, and loss account for the year ended 31st December 2014 opening stoc...

Assessment: WAEC SSCE - Financial Accounting - 2016 Subject: Financial Accounting

Question 1 Report

The following information relates to the books of accounts of Adom Ltd.

Trading, profit, and loss account for the year ended 31st December 2014

opening stock20,000
purchase160,000
180,000
less closing stock36,000
cost of goods sold144,000
Gross profit c/d96,000
240,000
selling & distri. exp73,200
administrative exp14,800
Net profit8,000
96,000
sales240,000
240,000
Gross profit b/d96,000
96,000

Balance sheet as at 31st December 2014

Share capital:
Ordinary shares100,000
Preference shares10,000
General reserve24,000
Profit & loss acc8,00032,000
142,000
Current liabilities
Trade creditors28,000
Accruals12,00040,000
182,000
Fixed assets at cost125,000
Less depreciation25,000
100000
Current assets:
Stock36,000
Debtors39,000
Cash in bank7,00082,000
182,000

You are required to calculate any six of the following
(a) Gross profit percentage
(b) Net profit percentage
(c) Return on capital employed
(d) Current ratio
(e) Acid test ratio
(f) Rate of stock of turnover
(g) Working capital
(h) Shareholders fund
(i) Liquid assets

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