SOCI and SOFP

Explain where Prepayment of Expenses appears in the Statement of Financial Position

• Current Assets

• Current Liabilities

• Non Current Assets

• Capital Employed

Opening Capital + Add Profit for the year – ............................= Capital Employed

Revenue expenses that remain unpaid at the end of the financial year e.g. Electricity bills that have not been paid/Vehicle expenses owing​

• Accrued Expenses

• Accrued Income

• Prepaid Expenses

• Prepaid Income

Income payments made in advance e.g. Rental Income being paid before it is due​

• Accrued Expenses

• Accrued Income

• Prepaid Expenses

• Prepaid Income

A carriage .................................. is where the seller pays the carriage charge (delivery charge) e.g. an item is sold as “Free Delivery”​

A Provision for doubtful debts is an estimate by a business of the likely percentage of its trade ........................ not paying during an accounting period​

Opening Inventory + Purchases – Purchase Returns - ................................ + Carriage inwards – Closing Inventory​

State two things that can be taken from the Purchases figure in the Statement of Comprehensive Income

• Goods for own use

• Carriage Inwards

• Sales Returns

• Purchase Returns

Explain where Prepayment of income appears in the Statement of Financial Position

• Other payables

• Other receivables

• Current assets

• Cost of Sales

Carriage .......................... is a cost incurred when a supplier charges for delivery on the goods purchased. It makes the goods that are purchased more expensive​