T Morgan, a sole Trader extracted the following trial balance from his books at the close of business on 31 M 1999. $ $ Purchases & Revenue 22,860 41,970 Inventory at 1 April 1998 5,160 Capital 1 April 1998 7,200 Bank overdraft 4,350 Cash 90 Discounts 1,440 930 Returns inwards 810 Returns outwards 570 Training unfancy WBM Carriage outwards 2,160 Rent and insurance 1,740 Allowance for doubtful debts 660 Fixtures and fittings 1,200 Delivery van 2,100 Trade Receivable and Trade Payables 11,910 6,060 Drawings 2,880 Wages and salaries 8,940 General office expenses 450 61,740 61,740 Notes; (1) Inventory 31 March 1999 $4,290. (2) Wages and salaries accrued at 31 March 1999 $210; office expenses owing $20. (3) Rent prepaid 31 March 1999 $180. (4) Increase allowance for doubtful debts by $150 to $810. (5) Provide for depreciation as follows fixtures and fittings $120; delivery van $300. Required; Prepare the Statement of profit or loss for the year ended 31 March 1999 and Statement of financial positio that date. Centre

T Morgan, a sole Trader extracted the following trial balance from his books at the close of business on 31 M 1999. $ $ Purchases & Revenue 22,860 41,970 Inventory at 1 April 1998 5,160 Capital 1 April 1998 7,200 Bank overdraft 4,350 Cash 90 Discounts 1,440 930 Returns inwards 810 Returns outwards 570 Training unfancy WBM Carriage outwards 2,160 Rent and insurance 1,740 Allowance for doubtful debts 660 Fixtures and fittings 1,200 Delivery van 2,100 Trade Receivable and Trade Payables 11,910 6,060 Drawings 2,880 Wages and salaries 8,940 General office expenses 450 61,740 61,740 Notes; (1) Inventory 31 March 1999 $4,290. (2) Wages and salaries accrued at 31 March 1999 $210; office expenses owing $20. (3) Rent prepaid 31 March 1999 $180. (4) Increase allowance for doubtful debts by $150 to $810. (5) Provide for depreciation as follows fixtures and fittings $120; delivery van $300. Required; Prepare the Statement of profit or loss for the year ended 31 March 1999 and Statement of financial positio that date. Centre

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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