Question 1 From the following trial balance of Ursula, you are asked to draw up a statement of profit or loss for the year ended 31 March 2019 and a statement of financial position as at that date. Dr Cr £ £ 82,000 Sales Purchases Inventory as at 1 April 2018 33.000 8.550 Premises 85.000 Equipment 28,000 Returns inwards 340 Bank 1,280 Wages 5.600 Insurance 390 Advertising 260 94,660 Capital Drawings 11,800 Returns outwards 450 6.500 Receivables Payables Rent 4,960 1,350 182,070 182,070 Additional information: 1) Inventory as at 31 March 2019 was valued at £10,660 2) A provision for doubtful debt is to be created at 5% of receivables at the year- end. 3) Accrued rent £350 4) Insurance paid in advance £250 5) Ursula provide depreciation on assets as follows: premises 10% and Equipment is 20% on cost annually.
Question 1 From the following trial balance of Ursula, you are asked to draw up a statement of profit or loss for the year ended 31 March 2019 and a statement of financial position as at that date. Dr Cr £ £ 82,000 Sales Purchases Inventory as at 1 April 2018 33.000 8.550 Premises 85.000 Equipment 28,000 Returns inwards 340 Bank 1,280 Wages 5.600 Insurance 390 Advertising 260 94,660 Capital Drawings 11,800 Returns outwards 450 6.500 Receivables Payables Rent 4,960 1,350 182,070 182,070 Additional information: 1) Inventory as at 31 March 2019 was valued at £10,660 2) A provision for doubtful debt is to be created at 5% of receivables at the year- end. 3) Accrued rent £350 4) Insurance paid in advance £250 5) Ursula provide depreciation on assets as follows: premises 10% and Equipment is 20% on cost annually.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:←
U
a
33.000
8.550
85,000
28,000
Introduction to Business finance
Accounting conventions
Week 8 seminar exercise
Question 1
From the following trial balance of Ursula, you are asked to draw up a
statement of profit or loss for the year ended 31 March 2019 and a statement
f financial position as at that date.
Dr
Cr
£
£
82,000
Sales
Purchases
Inventory as at 1 April 2018
Premises
Equipment
Returns inwards
340
Bank
1,280
5.600
Wages
Insurance
390
Advertising
260
Capital
94.660
Drawings
11,800
Returns outwards
450
Receivables
6.500
4,960
Payables
Rent
1,350
182.070 182,070
Additional information:
1) Inventory as at 31 March 2019 was valued at £10,660
2) A provision for doubtful debt is to be created at 5% of receivables at the year-
end.
3) Accrued rent £350
4) Insurance paid in advance £250
5) Ursula provide depreciation on assets as follows: premises 10% and Equipment
is 20% on cost annually
|||
<
V
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