Mathematics

(a) Given:
Opening stock 01-01-2012     34,430/=
Closing stock 31-12-2012        26,720/=
Net purchases during 2012    212,290/=
Expenses for the year              45,880/=
Gross Profit is 50% of cost of goods sold

Find: (i) Cost of goods sold (ii) The gross profit

(b) On 1st June, 2013 Mrs. Lemisha started business with capital of 100,000/= and made the following transactions:
June 2 bought furniture              40,000/=
7 bought goods                     70,000/=
11 sold goods                          65,000/=
16 paid Sundry expenses     30,000/=
19 cash sales                           80,000/=
24 paid wages                          50,000/=
26 withdraw cash                    30,000/=

(i) Prepare the cash account
(ii) Prepare the balance sheet as at 30/06/2013
(iii) Explain the importance of the balance sheet you have prepared in part (b)(ii) above.