lorato’s trial balance as at 31st December 2020 Dr Cr Pula Pula Sales 800,000 Sales Returns 17,000 Purchases 400,000 Purchases Returns 21,000 Land and Buildings 320,000 Machinery 275,000 Motor vehicle 130,000 Furniture 65,000 Opening inventory 50,000 Accounts receivable 220,000 Accounts payable 276,000 Capital 650,000 Cash at Bank 30,000 DIPLOMA Sessional Structured Timed Assignment January - June BPA612 Principles of Accounting ©BOU 2023 Page 5 of 11 Cash in hand 3,000 Telephone 12,000 Electricity 15,000 Salaries and wages 170,000 Discounts receivable 3,500 Discounts Allowed 2,000 Interest receivable 9,000 Interest payable 12,000 General expenses 28,000 Insurance 6,000 Bad debts 1,000 Provision for bad and doubtful debts 4,500 Carriage outwards 3,000 Carriage inwards 5,000 1,764,000.0 1,764,000 Additional information a. Closing inventory P40,000 b. Motor vehicles purchased P10, 000 was included in Purchases by mistake. c. Electricity P1, 000 was owing at the end of the financial year. d. Telephone bill was outstanding P2, 000. e. Salaries and wages P20, 000 was paid in advance f. Insurance of P1, 000 was paid in advance. g. Depreciate non-current assets by 20%. h. Provision for doubtful debts is 2% of accounts receivable. Required: a. Prepare the Statement of Comprehensive Income for the year ended 31st December 2020. b. Prepare the Statement of Financial Position as at 31st December 2020. please avoid image based solution thnku
lorato’s
please avoid image based solution thnku
Step by step
Solved in 4 steps
