2 Booksellers Limited prepared the following trial balance for the year ended 31 December2012:Gross profit for the yearWages and salariesRentHeating and lightingMotor expensesOffice expensesInsuranceDiscount allowedOther expensesInventory at 31 December 2012Trade receivablesProvision for doubtful receivablesBankTrade payablesGoodwillMotor vehicles at costShop fittings at costOffice fittings at costProvision for depreciation on motor vehiclesProvision for depreciation on shop fittingsProvision for depreciation on office fittings5% DebenturesOrdinary share capitalRetained earnings$0001274415501915253374537441764225731$000415415461232019026731 Additional information:1 Wages owing amounted to $23 000 at 31 December 2012.2 Debenture interest for the year had not been paid.3457Bad debts of $5000 were to be written off.The provision for doubtful receivables was to be 5% of trade receivables.Depreciation was provided on motor vehicles at 12%2% on cost and on shop fittings at10% on net book value.Office fittings had been revalued at $19 000.Rent paid in advance was $8000.REQUIRED(a) (i) Prepare a statement of profit and loss for the year ended 31 December 2012.(ii) Prepare a statement of changes in equity for the year ended 31 December 2012.(b) Prepare, in as much detail as possible, a statement of financial position at 31December 2012.

Financial statements are those statements which are prepared at the end of accounting period. The…

Additional information: 1 Wages owing amounted to $23 000 at 31 December 2012. 2 Debenture interest for the year had not been paid. 3 4 5 6 7 Bad debts of $5000 were to be written off. The provision for doubtful receivables was to be 5% of trade receivables. Depreciation was provided on motor vehicles at 12%2% on cost and on shop fittings at 10% on net book value. Office fittings had been revalued at $19 000. Rent paid in advance was $8000. REQUIRED (a) (i) Prepare a statement of profit and loss for the year ended 31 December 2012. (ii) Prepare a statement of changes in equity for the year ended 31 December 2012. (b) Prepare, in as much detail as possible, a statement of financial position at 31 December 2012.

Additional information: 1 Wages owing amounted to $23 000 at 31 December 2012. 2 Debenture interest for the year had not been paid. 3 4 5 6 7 Bad debts of $5000 were to be written off. The provision for doubtful receivables was to be 5% of trade receivables. Depreciation was provided on motor vehicles at 12%2% on cost and on shop fittings at 10% on net book value. Office fittings had been revalued at $19 000. Rent paid in advance was $8000. REQUIRED (a) (i) Prepare a statement of profit and loss for the year ended 31 December 2012. (ii) Prepare a statement of changes in equity for the year ended 31 December 2012. (b) Prepare, in as much detail as possible, a statement of financial position at 31 December 2012.

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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