(3) (5) Trade payables Bank charges Rent (6) Returns inwards. Returns outwards Salaries Wages Travelling expenses Carriage inwards Trade discounts allowed Trade discounts received General expenses Gas, electricity and water Carriage outwards Travellers' salaries and commission Printing and stationery 120 2,000 186 3,500 8,250 1,040 Plant and equipment by 10% per annum Furniture and fittings by 5% per annum 156 48 2,056 2,560 546 5,480 640 160,264 10,056 The following matters should be taken into account: (1) Inventory at 31 December 2020 was $7,550. (2) Federov's son works in the business, receiving an annual salary of $500, which had been included in the drawings. Interest on the loan at 5% per annum had not been paid at 31 December 2020. 135 138 160,264 Rent includes $250 for premises paid in advance for the half year to 31 March 2021. Depreciation is to be charged at the following rates on the reducing balance basis: The loss allowance for receivables is to be maintained at 3% of trade account receivable balances. Required: Prepare the statement of profit or loss for the year ended 31 December 2020 and the statement of financial position at that date.
(3) (5) Trade payables Bank charges Rent (6) Returns inwards. Returns outwards Salaries Wages Travelling expenses Carriage inwards Trade discounts allowed Trade discounts received General expenses Gas, electricity and water Carriage outwards Travellers' salaries and commission Printing and stationery 120 2,000 186 3,500 8,250 1,040 Plant and equipment by 10% per annum Furniture and fittings by 5% per annum 156 48 2,056 2,560 546 5,480 640 160,264 10,056 The following matters should be taken into account: (1) Inventory at 31 December 2020 was $7,550. (2) Federov's son works in the business, receiving an annual salary of $500, which had been included in the drawings. Interest on the loan at 5% per annum had not been paid at 31 December 2020. 135 138 160,264 Rent includes $250 for premises paid in advance for the half year to 31 March 2021. Depreciation is to be charged at the following rates on the reducing balance basis: The loss allowance for receivables is to be maintained at 3% of trade account receivable balances. Required: Prepare the statement of profit or loss for the year ended 31 December 2020 and the statement of financial position at that date.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help accurate
Transcribed Image Text:(3)
(4)
(5)
Trade payables
Bank charges
Rent
(6)
Returns inwards
Returns outwards
Salaries
Wages
Travelling expenses
Carriage inwards
Trade discounts allowed
Trade discounts received
General expenses
Gas, electricity and water
Carriage outwards
Travellers' salaries and commission
Printing and stationery
120
2,000
186
3,500
8,250
1,040
Plant and equipment by 10% per annum
Furniture and fittings by 5% per annum
156
48
2,056
2,560
546
5,480
640
160,264
10,056
135
The following matters should be taken into account:
(1)
Inventory at 31 December 2020 was $7,550.
(2)
Federov's son works in the business, receiving an annual salary of $500, which had been
included in the drawings.
138
160,264
Interest on the loan at 5% per annum had not been paid at 31 December 2020.
Rent includes $250 for premises paid in advance for the half year to 31 March 2021.
Depreciation is to be charged at the following rates on the reducing balance basis:
The loss allowance for receivables is to be maintained at 3% of trade account receivable
balances.
Required:
Prepare the statement of profit or loss for the year ended 31 December 2020 and the statement of
financial position at that date.
Transcribed Image Text:The following is the trial balance extracted from the books of Federov at 31 December 2020:
$
20,000
2,000
Capital
Loan account
Drawings
Freehold premises
Furniture and fittings - cost and accumulated
depreciation at 1 January
Plant and machinery - cost and accumulated
depreciation at 1 January
Inventory at 1 January
Cash at bank
Loss allowance for trade receivables
Purchases
Revenue
Irrecoverable debts
Irrecoverable debts recovered
Trade receivables
1,750
8,000
700
8,000
8,000
650
86,046
256
20,280
200
2,500
740
124,450
45
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