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The profit and loss account - numerical questions


Question 1

Solway Gliders plc has just set up a new office in Brussels. It purchased a new computer system and software. However, the computer system crashed following a power surge and some of the data was lost. The latest version of their profit and loss account is shown below, but it has some gaps. Your task is to calculate the figures that should be in these gaps and then to complete the account.

Profit and loss account - Solway Gliders plc year ended 31st May .... ($'000's)

2010 .......
...... Sales revenue 3,000
800 Cost of goods sold ......
1200 Gross profit 1,800
..... Expenses 800
80 Depreciation 150
400 Net profit before interest and tax .....
50 Interest 150
30 Taxation 80
..... Net profit after interest and tax ......
50 Dividends 135

Retained profit

(to balance sheet)


When you have completed this task, identify the changes between the two years and provide an explanation for them.

Question 2

From the following balances from the books of Fox Ltd, draw up a trading and profit and loss account for the year ended 30 June 2011.

Sales revenue 56,798
Cost of goods sold 32,532
General expenses 8,450
Sundry expenses 1,845
Advertising 2,378
Electricity costs 1,650
Rent received 1,240
Machine repairs 2,100
Insurance 3,400
Wages 17,645