International Accounting Standards
37
Appendix 2: Financial statements for other forms of
business (AS Level)
(a) Financial statements of a sole trader – trading business Statement of profit or loss Sole Trader (Name) Statement of profit or loss for the year ended 31 December 2020 $000 $000 $000
Revenue (sales)
520
Less Sales returns
(3)
517
Less Cost of sales
Opening inventory
46
Purchases
196
Less Purchase returns
(4)
192
Less Goods for own use
(2)
190
Carriage inwards
5 195
241
Less closing inventory
(56)
185
Gross profit
332
Discount received
2
Rent received
14
Commission received
4
* Profit on disposal of non-current assets
-
** Reduction in allowance for irrecoverable debts
-
352
Less Expenses
Wages and salaries
84
Office expenses
52
Rent and rates
26
Insurance
19
Motor vehicle expenses
28
Selling expenses
22
Loan interest
2
* Loss on disposal of non-current assets
7
** Provision for doubtful debts
3
Depreciation of fixtures and fittings
9
Depreciation of office equipment
6
Depreciation of motor vehicles
8
(266)
*** Profit for the year
86
International Accounting Standards
38
Notes: * If only one asset was sold during the year only one of these items will appear.
** If the allowance reduces, the decrease is added to the gross profit: if the allowance increases, the
increase is included in the expenses.
*** If the expenses exceed the gross profit plus other income, the resulting figure is described as a
loss for the year.
