Required to prepare : A) Trading and profit and loss appropriation account for the year ended 31 December 2019. B) A balance sheet as at 31 December 2019
Required to prepare : A) Trading and profit and loss appropriation account for the year ended 31 December 2019. B) A balance sheet as at 31 December 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Required to prepare :
A) Trading and
B) A balance sheet as at 31 December 2019
![Question 3
The following is the trial balance of Pork and Ham for the year ended 31 December 2019.
Debit
credit
Drawings:
Pork
1750
Ham
1429
Capital:
Pork
9 000
Ham
4 800
Current accounts:
Pork
880
Ham
120
Premises
10 000
Motor vehicles
1870
Stock 1 January 2019
2 395
Return inwards and outwards
110
286
Purchases/ Sales
19 463 28 797
Wages and salaries
Carriage inwards
Delivery expenses
4 689
216
309
Rent and rates
485
Insurance
116
Debtors/creditors
3 462
1 899
Cash in hand
180
General expenses
204
Loan-Thomas
2 000
Discount allowed/received
Motor expenses
392
404
635
Cash at bank
241
48 066 48 066
Additional information
1. Stock at 31 December 2019 was P5 623.
2. Depreciate motors by 10 %.
3. Insurance prepaid P12.
4. Rates owing P57
5. Included in salaries is a salary to Ham for the year P300.
6. Allow 5% interest on capitals.
7. Charge interest on drawings: Pork P58, Ham P39.
8. Goods valued at P75 have been taken by Pork for own use. No entry has been made in
the books.
9. Profit shared: Ham 2/5 and Pork 3/5.
10. Loan interest owing P140.
11. Make provision for bad debts P 320.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f27510b-2dba-4166-bbe5-25e12066f2e9%2Ffa69e864-3e60-419c-a552-d05ea6641333%2F62lgs3l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 3
The following is the trial balance of Pork and Ham for the year ended 31 December 2019.
Debit
credit
Drawings:
Pork
1750
Ham
1429
Capital:
Pork
9 000
Ham
4 800
Current accounts:
Pork
880
Ham
120
Premises
10 000
Motor vehicles
1870
Stock 1 January 2019
2 395
Return inwards and outwards
110
286
Purchases/ Sales
19 463 28 797
Wages and salaries
Carriage inwards
Delivery expenses
4 689
216
309
Rent and rates
485
Insurance
116
Debtors/creditors
3 462
1 899
Cash in hand
180
General expenses
204
Loan-Thomas
2 000
Discount allowed/received
Motor expenses
392
404
635
Cash at bank
241
48 066 48 066
Additional information
1. Stock at 31 December 2019 was P5 623.
2. Depreciate motors by 10 %.
3. Insurance prepaid P12.
4. Rates owing P57
5. Included in salaries is a salary to Ham for the year P300.
6. Allow 5% interest on capitals.
7. Charge interest on drawings: Pork P58, Ham P39.
8. Goods valued at P75 have been taken by Pork for own use. No entry has been made in
the books.
9. Profit shared: Ham 2/5 and Pork 3/5.
10. Loan interest owing P140.
11. Make provision for bad debts P 320.
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