Following Trial Balance was prepared by the accountant of “Market-ing For You” for the year ended 31st March 2021. DebitCreditService income 170000Capital 40800Land and buildings125000 Furniture and fixtures50000 Prepaid insurance6000 Electricity7800 Travelling expenses3000 Debtors65000 Creditors 42000Accumulated depreciation: Land and buildings 45000Accumulated depreciation: Furniture and fixtures 15000Provision for doubtful debt 3000Cash25000 Rental income 8000Telephone expenses4000 Unearned revenue 2000Investment50000 Bank loan 10000 Additional informationNon-current assets are depreciated at 10% per annumInsurance expired 4800Rental income receivable 4000Provision for doubtful debt is 5% on debtorsAccrued electricity 600Prepare the year-end financial statements for “Market-ing For You”.Income statementBalance sheetStatement of Owner’s Equity

Financial statements are the statements prepared by the entities at the end of a reporting period to…

Answered: Following Trial Balance was prepared by…

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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Following Trial Balance was prepared by the accountant of “Market-ing For You” for the year ended 31^st March 2021.

	Debit	Credit
Service income		170000
Capital		40800
Land and buildings	125000
Furniture and fixtures	50000
Prepaid insurance	6000
Electricity	7800
Travelling expenses	3000
Debtors	65000
Creditors		42000
Accumulated depreciation: Land and buildings		45000
Accumulated depreciation: Furniture and fixtures		15000
Provision for doubtful debt		3000
Cash	25000
Rental income		8000
Telephone expenses	4000
Unearned revenue		2000
Investment	50000
Bank loan		10000

Additional information

Non-current assets are depreciated at 10% per annum
Insurance expired 4800
Rental income receivable 4000
Provision for doubtful debt is 5% on debtors
Accrued electricity 600

Prepare the year-end financial statements for “Market-ing For You”.

Income statement
Balance sheet
Statement of Owner’s Equity

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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