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EXAM LOSS ACCOUNT WIT

EXAM LOSS ACCOUNT WIT

FINANCIAL ACCOUNTING
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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ull MTC - Wear Your Mask 11:34 AM CO 71% ( Back PARTNERSHIP ACCOUNTS BY MATSU... EXAMPLE 4 (TRADING AND PROFIT AND LOSS ACCOUNT WITH REDUCTION IN PROVISION OF BAD DEBTS) Matsuib and Memory are in partnership sharing profits and losses equally. The following is their trial balance as at 30 June 2020 Dr Cr Buildings (at cost 75000) 50000 Fixtures at cost 11000 Provision for depreciation: fixtures 3300 debtors 16243 creditors I1150 Cash at bank 677 Stock at 30 June 2020 41979 sales 123650 purchases Carriage outwards Discounts allowed 85416 1288 15 Loan interest: FNB 4000 Office expenses 2416 Salaries and wages 18917 Bad debts 503 Provision for bad debts Loan form FNB 400 40000 Capitals: Matsuib Memory 35000 29500 Current accounts: Matsuib 1306 Memory 298 Drawings: Matsuib Memory 6400 5650 244604 244604 Required: Prepare a trading and profit and loss appropriation account for the year ended 30 June 2020, and Balance sheet as at that date. (a) Stock 30 June 2020 56340 (b) Expenses to be Accrued: office expenses 96; Wages 200 (c) Depreciate fixtures 10 per cent on reducing balance basis, buildings 1000 (d) Reduce provision for bad debts to 320 (e) Partnership salary: 800 to Matsuib. Not yet entered (f) Interest on drawings; Matsuib 180 Memory 120 (g) Interest on capital account balances at 10 per cent.
Transcribed Image Text:ull MTC - Wear Your Mask 11:34 AM CO 71% ( Back PARTNERSHIP ACCOUNTS BY MATSU... EXAMPLE 4 (TRADING AND PROFIT AND LOSS ACCOUNT WITH REDUCTION IN PROVISION OF BAD DEBTS) Matsuib and Memory are in partnership sharing profits and losses equally. The following is their trial balance as at 30 June 2020 Dr Cr Buildings (at cost 75000) 50000 Fixtures at cost 11000 Provision for depreciation: fixtures 3300 debtors 16243 creditors I1150 Cash at bank 677 Stock at 30 June 2020 41979 sales 123650 purchases Carriage outwards Discounts allowed 85416 1288 15 Loan interest: FNB 4000 Office expenses 2416 Salaries and wages 18917 Bad debts 503 Provision for bad debts Loan form FNB 400 40000 Capitals: Matsuib Memory 35000 29500 Current accounts: Matsuib 1306 Memory 298 Drawings: Matsuib Memory 6400 5650 244604 244604 Required: Prepare a trading and profit and loss appropriation account for the year ended 30 June 2020, and Balance sheet as at that date. (a) Stock 30 June 2020 56340 (b) Expenses to be Accrued: office expenses 96; Wages 200 (c) Depreciate fixtures 10 per cent on reducing balance basis, buildings 1000 (d) Reduce provision for bad debts to 320 (e) Partnership salary: 800 to Matsuib. Not yet entered (f) Interest on drawings; Matsuib 180 Memory 120 (g) Interest on capital account balances at 10 per cent.
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