R. Wilson has provided you with his trial balance as at 31 December 2019. R. Wilson TRIAL BALANCE as at 31 December 2019 Debit € Credit € Property – cost Motor vehicles – cost 1,010,000 60,000 Accumulated depreciation as at 31 December 2018: Property 125,000 Motor Vehicles 20,800 Inventory as at 31 December 2018 88,200 Sales 1,580,000 Purchases 1,162,600 Returns in 15,000 Returns out 13,500 Trade receivables 160,000 Trade payables 110,500 Cash at bank 48,600 Administration salaries 95,800 Rent and rates 24,500 Prepayment 800 Insurance 19,200 Capital Drawings 259,100 16,000 Bad debts 2,800 2% Loan 600,000 2,708,900 2,708,900 The following information is available: 1. Inventory as at 31 December 2019 is valued at €97,500. 2. Depreciation is charged at the following rates: Property Motor Vehicles 2% per annum on a straight-line basis 20% per annum on a reducing-balance basis 3. Mr Wilson withdrew €3,500 (at cost) worth of goods from the business during the year. No accounting entry has been posted in relation to this transaction. 4. The insurance paid during the year relates to the period 1 February 2019 to 31 January 2020. The prepayment figure relates to insurance at the start of the year. 5. The loan was taken out on 1 September 2019 and under the terms of the loan interest is paid annually in arrears.
R. Wilson has provided you with his trial balance as at 31 December 2019. R. Wilson TRIAL BALANCE as at 31 December 2019 Debit € Credit € Property – cost Motor vehicles – cost 1,010,000 60,000 Accumulated depreciation as at 31 December 2018: Property 125,000 Motor Vehicles 20,800 Inventory as at 31 December 2018 88,200 Sales 1,580,000 Purchases 1,162,600 Returns in 15,000 Returns out 13,500 Trade receivables 160,000 Trade payables 110,500 Cash at bank 48,600 Administration salaries 95,800 Rent and rates 24,500 Prepayment 800 Insurance 19,200 Capital Drawings 259,100 16,000 Bad debts 2,800 2% Loan 600,000 2,708,900 2,708,900 The following information is available: 1. Inventory as at 31 December 2019 is valued at €97,500. 2. Depreciation is charged at the following rates: Property Motor Vehicles 2% per annum on a straight-line basis 20% per annum on a reducing-balance basis 3. Mr Wilson withdrew €3,500 (at cost) worth of goods from the business during the year. No accounting entry has been posted in relation to this transaction. 4. The insurance paid during the year relates to the period 1 February 2019 to 31 January 2020. The prepayment figure relates to insurance at the start of the year. 5. The loan was taken out on 1 September 2019 and under the terms of the loan interest is paid annually in arrears.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Urgenntttt!!!! Calculate gross profit.
Transcribed Image Text:R. Wilson has provided you with his trial balance as at 31 December 2019.
R. Wilson
TRIAL BALANCE
as at 31 December 2019
Debit €
Credit €
Property – cost
Motor vehicles – cost
1,010,000
60,000
Accumulated depreciation as at 31 December 2018:
Property
125,000
Motor Vehicles
20,800
Inventory as at 31 December 2018
88,200
Sales
1,580,000
Purchases
1,162,600
Returns in
15,000
Returns out
13,500
Trade receivables
160,000
Trade payables
110,500
Cash at bank
48,600
Administration salaries
95,800
Rent and rates
24,500
Prepayment
800
Insurance
19,200
Capital
Drawings
259,100
16,000
Bad debts
2,800
2% Loan
600,000
2,708,900
2,708,900
The following information is available:
1. Inventory as at 31 December 2019 is valued at €97,500.
2. Depreciation is charged at the following rates:
Property
Motor Vehicles
2% per annum on a straight-line basis
20% per annum on a reducing-balance basis
3. Mr Wilson withdrew €3,500 (at cost) worth of goods from the business during the year. No accounting
entry has been posted in relation to this transaction.
4. The insurance paid during the year relates to the period 1 February 2019 to 31 January 2020.
The
prepayment figure relates to insurance at the start of the year.
5. The loan was taken out on 1 September 2019 and under the terms of the loan interest is paid
annually in arrears.
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