DETAILS DR CR Cash 32,900 Land and Building 350,000 Provision for Depreciation on Building 42,000 Motor Vehicle 280,000 Provision for Depreciation on Motor Vehicle 56,000 Machinery and Equipment 220,000 Provision for Depreciation on Machinery & Equipment 33,000 Capital 400,000 Drawings 12,000 10% Loan 250,000 Building Repairs 30,000 Commission Received 42,000 Opening Stock 56,000 Insurance 23,000 Bad Debts 7,550 Sales 610,000 Wages and Salaries 78,000 Discounts 5,000 12,000 Loan Interest 18,000 Creditors 45,250 Returns 6,500 9,000 Rent Received 27,000 Purchases 380,000 Debtors 60,000 Provision for Bad Debts 9,200 Telephone Charges 23,500 Bank 47,000 1,582,450 1,582,450 Additional Notes a. Stock at year end was valued at $80,000 b. Wages is prepaid by $3,000 c. Telephone charges is owing by $2,500 d. Stock drawings $8,000 e. The rent received is owing by $8,000 f. Commission income is prepaid by $8,000 g. The provision for bad debts is to be adjusted to 10% of debtors h. Depreciation charges are to be applied as follows ASSET RATE METHOD Land and Building 5% Straight Line Motor Vehicle 10% Reducing Balance Machinery and Equipment 10% Straight Line Prepare the following A) the Statement of Profit and Loss B) The Statement of Financial Position

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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DETAILS	DR	CR
Cash	32,900
Land and Building	350,000
Provision for Depreciation on Building		42,000
Motor Vehicle	280,000
Provision for Depreciation on Motor Vehicle		56,000
Machinery and Equipment	220,000
Provision for Depreciation on Machinery & Equipment		33,000
Capital		400,000
Drawings	12,000
10% Loan		250,000
Building Repairs	30,000
Commission Received		42,000
Opening Stock	56,000
Insurance	23,000
Bad Debts	7,550
Sales		610,000
Wages and Salaries	78,000
Discounts	5,000	12,000
Loan Interest	18,000
Creditors		45,250
Returns	6,500	9,000
Rent Received		27,000
Purchases	380,000
Debtors	60,000
Provision for Bad Debts		9,200
Telephone Charges	23,500
Bank		47,000
	1,582,450	1,582,450