28.10A. J wright a sole trader, exracted the following trial balance from his bookat the close of business on 31 March 20X9.DRCR££Purchases and sales61,420127,245Stock 1 April 20X8Capital 1 April 20X8Bank overdraft7,94025,2002,490Cash140Discounts2,48062Returns inwards3,486Returns outwards1,356Carriage outwardsRent and insurance3,2108,870Provision for doubtful debts630Fixtures and fittings1,900Van5,600Debtors and creditors12,41811400DrawingsWages and salariesGeneral office expenses21,40039,200319168,383168,383Notes:(a) Stock 31 March 20X9 £6,805.(b) Wages and salaries accrued at 31 March 20X9 £3,500; Office expenses owing £16.(c) Rent prepaid 31 March 20X9 £600.(d) Increase the provision for doubtful debts by £110 to £740.(e) Provide for depreciation as follows: Fixtures and fittings £190; Van £1,400.Required:Prepare the trading and profit and loss accounts for the year ended 31 March 20X9together with a balance sheet as at that date.

Trading and profit & loss account is prepared to know the profit or loss of the business.

Answered: Required: Prepare the trading and…

Required: Prepare the trading and profit and loss accounts for the year ended 31 March 20X9 together with a balance sheet as at that date.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.2MBA: Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the...

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