Practice Activity 9.4 Financial statements of a sole proprietor

The facts are the same as practice activity 9.3.

The closing inventory as at 31 July 2019 is ₦12,500.

You are required to prepare the statements of:

i. Profit or loss for the year ended 31 July 2019; and

ii.Financial position as at 31 July 2019.

See the suggested answers to practice activity 9.4 here.

Suggested answers to practice activity 9.4

Ama Enterprises

Statement of profit or loss for the year ended 31 July 2019

	Note	₦
Revenue		122,000
Cost of sales	1	31,800
Gross profit		90,200
Administrative expenses	2	34,050
Operating profit		56,150
Profit for the period		56,150