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Grade 9 EMS Financial Statements Guide

The document provides instructions for completing financial statements and ratios for Hatfield Bakery as of October 30, 2011. It includes tasks such as completing a Trial Balance, Income Statement, and Balance Sheet, as well as calculating solvency, quick acid test, and profitability ratios. Additional information about the business's profit mark-up on trading stock is also provided.

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32 views2 pages

Grade 9 EMS Financial Statements Guide

The document provides instructions for completing financial statements and ratios for Hatfield Bakery as of October 30, 2011. It includes tasks such as completing a Trial Balance, Income Statement, and Balance Sheet, as well as calculating solvency, quick acid test, and profitability ratios. Additional information about the business's profit mark-up on trading stock is also provided.

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EN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Question 6 FINANCIAL STATEMENTS / RATIOS (49 marks; 33 minutes)

Read the information extracted from the books of Hatfield Bakery, one of the main
suppliers to the hospitality industry, at the end of their financial year (30 October 2011)

INSTRUCTIONS:

6.1 Complete the Trial Balance that was drawn up by an inexperienced bookkeeper.

6.2 Use the Trial Balance to complete the Income Statement and Balance Sheet of
Hatfield Bakery and answer the questions that follow.

6.3 Use the Balance sheet of Hatfield Bakery to calculate:


(a) the solvency ratio
(b) quick acid test ratio and
(b) the profitability of the business.

Additional information:

The business sells all trading stock at a profit mark-up of 60%

6.1 Complete the Trial Balance by solving the question marks and filling in the folio’s.
Hatfield Bakery
Trial Balance on 31 October 2011
FOL DEBIT CREDIT
BALANCE SHEET SECTION
Capital ?
Drawings 6 000
Land and buildings 600 000
Vehicles 200 000
Equipment 20 000
Trading stock 50 000
Debtors control 80 000
Bank 25 000
Creditors control 115 000
NOMINAL ACCOUNT SECTION
Sales 250 000
Cost of sales ?
Rent income 15 000
Water and electricity 2 500
Salaries 35 000
Wages 20 000
Telephone 1 500
Stationery 1 250
Consumables stores 1 000
Advertisements 7 500
Packing material 10 000
? ?

Grade 9 EMS Year-end Examination 2011 Page 8


6.2 Refer to the Trial Balance of Hatfield Bakery and complete the
Financial Statements

Hatfield Bakery
Income Statement for the year ended 31 October 2011

Gross Profit
Other operating income

Gross operating income


Operating expenses

Grade 9 EMS Year-end Examination 2011 Page 9

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