Q5The following trial balance was extracted from the books of Albert Brown, a retaileras at 31 December 2017DebitCreditCapital Account110,000Leasehold Premises at costWagesStationery65,0006,10052028,800Trade Receivables17,427Trade PayablesFittings at costLighting and healingInventory (1/1/2017)Postage and telephoneMotor Vans at costBad debts written offCash at Bank28,4001,28020,31091710,0004506,7802,850193,855Motor Van ExpensesPurchasesRevenueBank Term Loan232,60010,000Investments (market value £6,000)AdvertisingCarriage InwardsRent and Rates6,5003,0002,7503,22011,200725DrawingsBank InterestInvestment IncomeBad Debt Provision5001,890Provision for Depreciation:Leasehold PremisesMotors VansFittings6,3404,6009,300392.657392.657 The following matters are to be taken into account.(1) Inventory 31/12/2017 £23,700(2) Wages due but unpaid at 31/12/2017 £250(3) Rent paid in advance at 31/12/2017 £400(4) Provision for Bad Debts is to be calculated at 5% of Trade Receivables.(5) An adjustment should be made because the benefit of the amountexpended on advertising during 2017 is expected to accrue evenly over2017 and 2018.In mid-December a Motor Van, costing £2,000 and on which depreciationof £600 had been accumulated was sold for £1,500. A replacement vanwas purchased for £3,000. These transactions had not been recorded inthe books by 31* December 2017 nor had any cash been paid or received.(6)(7) During the year Mr Brown took goods valued at £3,500 (cost price) forprivate purposes, no records were maintained in the books.(8) Depreciation is to be provided as follows:Leasehold Premises 5% p.a. on reducing balanceFittings 10% pa on a straight line basis.Motor Vans 20% on a straight line basis.A full year depreciation is to be provided for fixed assets on the books at 31"December 2017.RequiredA comprehensive income statement for 2017 and a financial position statementas at 31 December 2017.

1. Income Statement - Income Statement is the summary of all the transaction incurred in the…

a5 The following trial balance was extracted from the books of Albert Brown, a retailer as at 31" December 2017 Debit Credit Capital Account 110,000 Leasehold Premises at cost Wages Stationery Trade Receivables Trade Payables Fittings at cost Lighting and healing Inventory (1/1/2017) Postage and telephone Motor Vans at cost Bad debts written off Cash at Bank Motor Van Expenses 65,000 6,100 520 28,800 17,427 28,400 1,280 20,310 917 10,000 450 6,780 2,850 193,855 Purchases Revenue Bank Term Loan 232,600 10,000 Investments (market value £6,000) Advertising Carriage Inwards Rent and Rates Drawings 6,500 3,000 2,750 3,220 11,200 725 Bank Interest Investment Income Bad Debt Provision Provision for Depreciation: Leasehold Premises Motors Vans Fittings 500 1,890 6,340 4,600 9,300 392.657 392.657

a5 The following trial balance was extracted from the books of Albert Brown, a retailer as at 31" December 2017 Debit Credit Capital Account 110,000 Leasehold Premises at cost Wages Stationery Trade Receivables Trade Payables Fittings at cost Lighting and healing Inventory (1/1/2017) Postage and telephone Motor Vans at cost Bad debts written off Cash at Bank Motor Van Expenses 65,000 6,100 520 28,800 17,427 28,400 1,280 20,310 917 10,000 450 6,780 2,850 193,855 Purchases Revenue Bank Term Loan 232,600 10,000 Investments (market value £6,000) Advertising Carriage Inwards Rent and Rates Drawings 6,500 3,000 2,750 3,220 11,200 725 Bank Interest Investment Income Bad Debt Provision Provision for Depreciation: Leasehold Premises Motors Vans Fittings 500 1,890 6,340 4,600 9,300 392.657 392.657

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 17Q: A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300....

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The following are trial balance and adjustment data for Zubair's Shop on December 31,2010Particulars Debit CreditCash 9,200Accounts Receivable 21,400Inventory Jan 1 3,200Prepaid Rent 1,800Furniture 12,000Accumulated Depreciation 2,400Unearned Commission 3,600Capital, Zain 48,400Sales 30,000Sales Discount 300Purchases 32,000Purchases Return 500Transportation-in 500Salaries Expenses 3,300Rent Expenses 1,200Additional Information• Account receivable was expected to realize Rs. 20,000• Book value of furniture was estimated at Rs.9,000• Rent was prepaid to the extent of Rs.600• Commission earned during the year amounted to Rs. 2,400• Actual Salaries expenses for the year amounted Rs. 4,800 • Merchandise Inventory on December 31,2010 was valued at Rs. 8,800Requireda) Prepared Income Statement for the year ended December 31, 2021 (5)b) Prepared Balance Sheet as on December 31, 2021
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Chapter: Receivables Accounting System
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[A] Instructions: Compute for the required item (refer to the photo below) using a yellow ruled sheet. (Show solution)