QUESTION : 2 The following Trial balance was extracted from the book of Jim Jones a Sole Trader at December 31* , 2020 DETAILS DEBIT ($) CREDIT ($) Sales 138,078 Purchases 82,350 5,144 Carriage Drawings 7,800 Rates, Rent, Insurance Postage and Stationery Salary and wages 6,622 3,001 26,420 Bad debts 877 Provision for bad debts 130 Debtors Creditors 6,471 Cash in Hand 1,507 1,002 Cash at Bank Stock (1* Jan ) Equipment at Cost Accumulated Depreciation Capital 11,927 58,000 19,000 53,091 ТОTAL 216,770 216,770 The following matters are to be taken into account: A. Rent is accrued by $210 B. Rates have been prepaid by $880 C. $ 2,211 of the carriage represents carriage inwards on purchases D. Equipment is to be depreciated at 15% per annum using the straight line method E. The provision for bad debts is to be increased to $170 F. Stock as at 31 December has been valued at $13,551 G. During the year Jim withdrew goods valued $200 for his own use. No entry was recorded for withdrawal in the books. H. NET PROFIT for the period $7418 REQUIRED: Prepare Mr. Jim Jones's Balance Sheet as at December 31, 2020 . (Trading and Profit & Loss account is not required). You must use Vertical Presentation Format for preparing the Balance Sheet.
QUESTION : 2 The following Trial balance was extracted from the book of Jim Jones a Sole Trader at December 31* , 2020 DETAILS DEBIT ($) CREDIT ($) Sales 138,078 Purchases 82,350 5,144 Carriage Drawings 7,800 Rates, Rent, Insurance Postage and Stationery Salary and wages 6,622 3,001 26,420 Bad debts 877 Provision for bad debts 130 Debtors Creditors 6,471 Cash in Hand 1,507 1,002 Cash at Bank Stock (1* Jan ) Equipment at Cost Accumulated Depreciation Capital 11,927 58,000 19,000 53,091 ТОTAL 216,770 216,770 The following matters are to be taken into account: A. Rent is accrued by $210 B. Rates have been prepaid by $880 C. $ 2,211 of the carriage represents carriage inwards on purchases D. Equipment is to be depreciated at 15% per annum using the straight line method E. The provision for bad debts is to be increased to $170 F. Stock as at 31 December has been valued at $13,551 G. During the year Jim withdrew goods valued $200 for his own use. No entry was recorded for withdrawal in the books. H. NET PROFIT for the period $7418 REQUIRED: Prepare Mr. Jim Jones's Balance Sheet as at December 31, 2020 . (Trading and Profit & Loss account is not required). You must use Vertical Presentation Format for preparing the Balance Sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:8:04
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Required: From the above information given, prepare Trial Balance only (Journal, Ledger Not
required)
ASSIGNMENT TWO
Total Marks: 20
QUESTION : 2
The following Trial balance was extracted from the book of Jim Jones a Sole Trader at December
31" , 2020
DETAILS
DEBIT
($)
CREDIT
($)
Sales
138,078
Purchases
Carriage
Drawings
82,350
5,144
7,800
Rates, Rent, Insurance
6,622
Postage and Stationery
Salary and wages
3,001
26,420
Bad debts
877
Provision for bad debts
130
Debtors
12,120
Creditors
6,471
Cash in Hand
1,507
1,002
Cash at Bank
Stock (1* Jan )
11,927
Equipment at Cost
Accumulated Depreciation
58,000
19,000
Сapital
ТОTAL
53,091
216,770
216,770
The following matters are to be taken into account:
A. Rent is accrued by $210
B. Rates have been prepaid by $880
C. $ 2,211 of the carriage represents carriage inwards on purchases
D. Equipment is to be depreciated at 15% per annum using the straight line method
E. The provision for bad debts is to be increased to $170
F. Stock as at 31s" December has been valued at $13,551
G. During the year Jim withdrew goods valued $200 for his own use. No entry was recorded for
withdrawal in the books.
H. NET PROFIT for the period $7418
REQUIRED:
Prepare Mr. Jim Jones's Balance Sheet as at December 31, 2020 . (Trading and Profit &
Loss account is not required).
You must use Vertical Presentation Format for preparing the Balance Sheet.
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