CHAPTER 3 Business structures 1153.3 Using the information from self-evaluation activity 3.2, assume the partnership had been in existence
for three months, made a profit of $44 800 for the period ended 30 June 2017 and retained this as
cash in the business. Prepare a new balance sheet to incorporate this profit, assuming that no written
partnership agreement exists.SOLUTION TO 3.3H&J Fine Wines
Balance sheet as at 30 June 2017
Current assets
Cash
Inventory$101 200
52 800
Non-current assets
Furniture
Laptop computer17 500
2 000
Total assets 173 500
Current liabilities
Accounts payable 1 400
Total liabilities 1 400
Net assets $172 100
Partners’ equity
Capital
— Hellen
— Jenny
Current
— Hellen
— Jenny79 700
47 60022 400
22 400
Total partners’ equity $172 1003.4 Willow Deng operates Spinnaker Pty Ltd, a private company selling sailing accessories. The
following information is available to you for Spinnaker Pty Ltd’s first year of operations ended
30 June 2016: sales revenue $57 800; accounts receivable $13 600; accounts payable $6800; rent
expense $3 600; bank loan 17 000; share capital $34 000; equipment $48 960; cost of sales $32 000;
gas and electricity expense $2840; insurance expense $1000; supplies expense $680; cash $3400;
taxation expense $3400. No dividends were declared for the period.
Prepare a statement of profit or loss for the financial year ended 30 June 2016 and a balance sheet
as at 30 June 2016 for Spinnaker Pty Ltd.SOLUTION TO 3.4Spinnaker Pty Ltd
Statement of profit or loss for the financial year ended 30 June 2016
Income
Sales revenue
Less: Cost of sales
Gross profit$57 800
32 000
25 800
Expenses
Rent expense
Insurance expense
Supplies expense
Gas and electricity expense$3 600
1 000
680
2 840 8 120
Profit before tax
Taxation expense17 680
3 400
Profit after tax $14 280