2-During the year to 31 January 2021, the following transactions took place (in no particular order): 1. Inventories costing JD 122,600 were purchased. All purchases were made on credit. 2. Sales made during the year were JD132,400, of which JD 6,200 were cash sales. 3. Receipts from credit customers (trade receivables) totaled JD 120,200. 4. Payments to credit suppliers (trade payables) totaled JD 114,500. 5. Closing inventories were initially valued at JD 37,500. However, one box of inventory (cost JD 4,300) was found to be damaged, and it is estimated that it will only be sold for JD 2,000. 6. Wages totaling JD 35,500 were paid during the year. At the end of the year, the business owed JD 2,200 of wages. 3. The business uses the straight line method of depreciation for non-current assets. All motor vehicles are assumed to have a useful life of 5 years and no residual value. There were no additions or disposals to non-current assets during the year. Required: Prepare an income statement for the year ended 31 January 2021 and a balance sheet as at that date. Solve the question by using T accounts.

2-During the year to 31 January 2021, the following transactions took place (in no particular order): 1. Inventories costing JD 122,600 were purchased. All purchases were made on credit. 2. Sales made during the year were JD132,400, of which JD 6,200 were cash sales. 3. Receipts from credit customers (trade receivables) totaled JD 120,200. 4. Payments to credit suppliers (trade payables) totaled JD 114,500. 5. Closing inventories were initially valued at JD 37,500. However, one box of inventory (cost JD 4,300) was found to be damaged, and it is estimated that it will only be sold for JD 2,000. 6. Wages totaling JD 35,500 were paid during the year. At the end of the year, the business owed JD 2,200 of wages. 3. The business uses the straight line method of depreciation for non-current assets. All motor vehicles are assumed to have a useful life of 5 years and no residual value. There were no additions or disposals to non-current assets during the year. Required: Prepare an income statement for the year ended 31 January 2021 and a balance sheet as at that date. Solve the question by using T accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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