28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a soletrader.Trial Balance as at 31 May 20X6DrCrSales138,078PurchasesCarriageDrawingsRent, rates and insurancePostage and stationeryAdvertisingSalaries and wagesBad debts82,3505,1447,8006,6223,0011,33026,420877Provision for doubtful debts130Debtors12,120Creditors6,471Cash in hand177Cash at bankStock as at 1 June 20X5Equipment1,00211,927at cost58,000accumulated depreciationCapital19,00053,091216,770216,770The following additional information as at 31 May 20X6 is available:(a) Rent is accrued by £210.(b) Rates have been prepaid by f880.() £2,211 of carriage represents carriage inwards on purchases.(d) Equipment is to be depreciated at 15% per annum using the straight line method.(e) The provision for doubtful debts to be increased by £40.(f) Stock at the close of business has been valued at f13,551.Required:Prepare a trading and profit and loss account for the year ended 31 May 20X6 and a balance sheetas at that date.

Trading & Profit & loss of the business shows all income and expenses of the business by…

28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader. Trial Balance as at 31 May 20X6 Dr Cr Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts 138,078 82,350 5,144 7,800 6,622 3,001 1,330 26,420 877 Provision for doubtful debts 130 Debtors 12,120 Creditors 6,471 Cash in hand 177 Cash at bank Stock as at 1 June 20X5 1,002 11,927 Equipment at cost accumulated depreciation Capital 58,000 19,000 53,091 216,770 216,770 The following additional information as at 31 May 20X6 is available: (a) Rent is accrued by £210. (b) Rates have been prepaid by £880. () £2,211 of carriage represents carriage inwards on purchases. (d) Equipment is to be depreciated at 15% per annum using the straight line method. (e) The provision for doubtful debts to be increased by £40. () Stock at the close of business has been valued at £13,551. Required: Prepare a trading and profit and loss account for the year ended 31 May 20X6 and a balance sheet as at that date.

28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader. Trial Balance as at 31 May 20X6 Dr Cr Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts 138,078 82,350 5,144 7,800 6,622 3,001 1,330 26,420 877 Provision for doubtful debts 130 Debtors 12,120 Creditors 6,471 Cash in hand 177 Cash at bank Stock as at 1 June 20X5 1,002 11,927 Equipment at cost accumulated depreciation Capital 58,000 19,000 53,091 216,770 216,770 The following additional information as at 31 May 20X6 is available: (a) Rent is accrued by £210. (b) Rates have been prepaid by £880. () £2,211 of carriage represents carriage inwards on purchases. (d) Equipment is to be depreciated at 15% per annum using the straight line method. (e) The provision for doubtful debts to be increased by £40. () Stock at the close of business has been valued at £13,551. Required: Prepare a trading and profit and loss account for the year ended 31 May 20X6 and a balance sheet as at that date.

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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