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To prepare a Trading Profit and Loss account and a Balance Sheet. The "Required" section specifies the year ended 31st October 2025, but the provided data for Bizna Distributor Company is for the year

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The question asks to prepare a Trading Profit and Loss account and a Balance Sheet. The "Required" section specifies the year ended 31st October 2025, but the provided data for Bizna Distributor Company is for the year ended 31st December 2009. I will use the data provided for Bizna Distributor Company and prepare the accounts for the year ended 31st December 2009.

Part i· 2 steps

Prepare Trading Profit and Loss account for the year ended 31st December 2009

  1. Calculate the Cost of Goods Sold (COGS).

    Cost of Goods Sold=Opening Stock+Purchases−Closing Stock\text{Cost of Goods Sold} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock} Cost of Goods Sold=shs 285,000+shs 1,830,000−shs 315,000\text{Cost of Goods Sold} = \text{shs } 285,000 + \text{shs } 1,830,000 - \text{shs } 315,000 Cost of Goods Sold=shs 1,800,000\text{Cost of Goods Sold} = \text{shs } 1,800,000

  2. Calculate the Net Profit.

    Net Profit=Gross Profit−Expenses\text{Net Profit} = \text{Gross Profit} - \text{Expenses} Net Profit=shs 600,000−shs 360,000\text{Net Profit} = \text{shs } 600,000 - \text{shs } 360,000 Net Profit=shs 240,000\text{Net Profit} = \text{shs } 240,000

    Bizna Distributor Company
    Trading and Profit and Loss Account
    For the year ended 31st December 2009

    Particularsshsshs
    Sales2,400,000
    Less: Cost of Goods Sold
    Opening Stock285,000
    Add: Purchases1,830,000
    Cost of Goods Available for Sale2,115,000
    Less: Closing Stock(315,000)
    Cost of Goods Sold(1,800,000)
    Gross Profit600,000
    Less: Expenses(360,000)
    Net Profit240,000

Part ii· 3 steps

Prepare Balance sheet as at 31st December 2009

  1. Calculate Total Current Assets.

    Total Current Assets=Closing Stock+Debtors+Bank\text{Total Current Assets} = \text{Closing Stock} + \text{Debtors} + \text{Bank} Total Current Assets=shs 315,000+shs 900,000+shs 35,000\text{Total Current Assets} = \text{shs } 315,000 + \text{shs } 900,000 + \text{shs } 35,000 Total Current Assets=shs 1,250,000\text{Total Current Assets} = \text{shs } 1,250,000

  2. Calculate Total Assets.

    Total Assets=Fixed Assets+Total Current Assets\text{Total Assets} = \text{Fixed Assets} + \text{Total Current Assets} Total Assets=shs 400,000+shs 1,250,000\text{Total Assets} = \text{shs } 400,000 + \text{shs } 1,250,000 Total Assets=shs 1,650,000\text{Total Assets} = \text{shs } 1,650,000

  3. Calculate Capital (Equity).

    Capital=Total Assets−Current Liabilities\text{Capital} = \text{Total Assets} - \text{Current Liabilities} Capital=shs 1,650,000−shs 438,000\text{Capital} = \text{shs } 1,650,000 - \text{shs } 438,000 Capital=shs 1,212,000\text{Capital} = \text{shs } 1,212,000

    Bizna Distributor Company
    Balance Sheet
    As at 31st December 2009

    Assetsshsshs
    Non-Current Assets
    Fixed Assets400,000
    Current Assets
    Closing Stock315,000
    Debtors900,000
    Bank35,000
    Total Current Assets1,250,000
    Total Assets1,650,000
    Equity and Liabilities
    Capital1,212,000
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