(a) H. Melinda Trail Balance as at 31 December 2020 1. 2. 3. Allowance for irrecoverable receivables Inventory at 1st January 2020 Trade receivables Trade payables Drawings You are given the following additional information: 4. The trial balance extracted from H. Melinda, a sole trader, as at 31 December 2020 was as follows: 5. 6. Capital Furniture and equipment at cost Allowance for depreciation on furniture Motor vehicles at cost Allowance for depreciation on motor vehicle Purchases Rent and rates Salaries Irrecoverable receivables General expenses Bank balance Sales Inventory in trade on 31 December 2020 is K37 712. Rates paid in advance 31 Dec Required: (1) is K24 DR K (1) 8 400 32 000 145 164 11 200 55 876 1124 8 248 17 232 34 904 17 156 27 152 358 456 CR K 30 796 1840 9600 302 488 1076 12 656 General expenses unpaid at 31 December 2020 is K1 864. Allowance for irrecoverable receivables is to be adjusted to K1 720. A new vehicle was purchased at a cost of K16 000 on 31 December 2020 on credit. The amount due on the new vehicle was payable within one month. No entries had been made in the books in respect of this transaction when the trial balance at 31 December 2020 was extracted. 358 456 Depreciation is to be charged on furniture and equipment at the rate of 5% percent per annum on cost and on the vehicles at the rate of 25% per annum on cost. Prepare H. Melinda's statement of profit or loss for the year ended 31 December 2020. noy Prepare H. Melinda's statement of financial position as at 31 December 2020.
(a) H. Melinda Trail Balance as at 31 December 2020 1. 2. 3. Allowance for irrecoverable receivables Inventory at 1st January 2020 Trade receivables Trade payables Drawings You are given the following additional information: 4. The trial balance extracted from H. Melinda, a sole trader, as at 31 December 2020 was as follows: 5. 6. Capital Furniture and equipment at cost Allowance for depreciation on furniture Motor vehicles at cost Allowance for depreciation on motor vehicle Purchases Rent and rates Salaries Irrecoverable receivables General expenses Bank balance Sales Inventory in trade on 31 December 2020 is K37 712. Rates paid in advance 31 Dec Required: (1) is K24 DR K (1) 8 400 32 000 145 164 11 200 55 876 1124 8 248 17 232 34 904 17 156 27 152 358 456 CR K 30 796 1840 9600 302 488 1076 12 656 General expenses unpaid at 31 December 2020 is K1 864. Allowance for irrecoverable receivables is to be adjusted to K1 720. A new vehicle was purchased at a cost of K16 000 on 31 December 2020 on credit. The amount due on the new vehicle was payable within one month. No entries had been made in the books in respect of this transaction when the trial balance at 31 December 2020 was extracted. 358 456 Depreciation is to be charged on furniture and equipment at the rate of 5% percent per annum on cost and on the vehicles at the rate of 25% per annum on cost. Prepare H. Melinda's statement of profit or loss for the year ended 31 December 2020. noy Prepare H. Melinda's statement of financial position as at 31 December 2020.
Chapter1: Financial Statements And Business Decisions
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Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:QUESTION THREE
(a)
H. Melinda
Trail Balance as at 31 December 2020
1.
2.
3.
4.
The trial balance extracted from H. Melinda, a sole trader, as at 31
December 2020 was as follows:
You are given the following additional information:
5.
6.
Capital
Furniture and equipment at cost
Allowance for depreciation on furniture
Motor vehicles at cost
Allowance for depreciation on motor vehicle
Purchases
Rent and rates
Salaries
Irrecoverable receivables
General expenses
Bank balance
Sales
Allowance for irrecoverable receivables
Inventory at 1st January 2020
Trade receivables
Trade payables
Drawings
Inventory in trade on 31 December 2020 is K37 712.
Rates paid in advance at 31 December 2020 is K240.
DR
K
Required:
(10)
8 400
(H)
32 000
145 164
11 200
55 876
1124
8 248
17 232
34 904
17 156
27 152
358 456
CR
K
30 796
1.840
9 600
302 488
1 076
12 656
General expenses unpaid at 31 December 2020 is K1 864.
Allowance for irrecoverable receivables is to be adjusted to K1 720.
A new vehicle was purchased at a cost of K16 000 on 31 December 2020 on
credit. The amount due on the new vehicle was payable within one month.
No entries had been made in the books in respect of this transaction when
the trial balance at 31 December 2020 was extracted.
358 456
Depreciation is to be charged on furniture and equipment at the rate of 5%
percent per annum on cost and on the vehicles at the rate of 25% per annum
on cost.
Prepare H. Melinda's statement of profit or loss for the year ended 31
December 2020.
201
Prepare H. Melinda's statement of financial position as at 31 December 2020.
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