The following additional information for Mr KYM was available:Stock at 30 June 2007 was valued Rs 18,000 at cost and Rs 20,000 at net realizable value.Carriage inwards owing amounted to Rs 600.Drawings of goods worth Rs 550 for personal use had not been taken into account.Motor vehicles are to be depreciated at 20% per annum at written down value.Provision for doubtful debts is to be adjusted to 5% of debtors.Commission received in advance amounted to Rs 400.Rent included Rs 350 deposit paid to the landlord. Required:Prepare the adjusted Trading, Profit and Loss Account of Mr KYM for the year ended 30 June 2007. Prepare the adjusted Balance Sheet of Mr KYM . List out two possible users of the above financial statements giving brief reasons in each case. Trial Balances of Mr KYM on 30 June 2007 were as follows:Trial Balance as at 30 June 2007Capital (1 July 2006)DrawingsMotor Vehicles (at cost)Office Equipment (at cost)Stock (1 July 2006)Debtors and creditorsBankRentRepairs and MaintenanceCarriage outwardsCarriage inwardsPurchase returnsSales returnsPurchases and salesDuty on purchasesProvision for depreciation of motor vehiclesProvision for Doubtful DebtsDiscount receivedBad debtsCommissionDebitRs1,00030,0007,50016,7504,5006,7504,5506805401,15030021,6002,16030097,780CreditRs35,0001,05045,3009,0003002801,80097,780

Trading and Profit and Loss account shows all type of incomes and expenses in the business and at…

Answered: The following additional information…

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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The following additional information for Mr KYM was available:

Stock at 30 June 2007 was valued Rs 18,000 at cost and Rs 20,000 at net realizable value.
Carriage inwards owing amounted to Rs 600.
Drawings of goods worth Rs 550 for personal use had not been taken into account.
Motor vehicles are to be depreciated at 20% per annum at written down value.
Provision for doubtful debts is to be adjusted to 5% of debtors.
Commission received in advance amounted to Rs 400.
Rent included Rs 350 deposit paid to the landlord.

Required:

Prepare the adjusted Trading, Profit and Loss Account of Mr KYM for the year ended 30 June 2007.
Prepare the adjusted Balance Sheet of Mr KYM .
List out two possible users of the above financial statements giving brief reasons in each case.

Trial Balances of Mr KYM on 30 June 2007 were as follows:
Trial Balance as at 30 June 2007
Capital (1 July 2006)
Drawings
Motor Vehicles (at cost)
Office Equipment (at cost)
Stock (1 July 2006)
Debtors and creditors
Bank
Rent
Repairs and Maintenance
Carriage outwards
Carriage inwards
Purchase returns
Sales returns
Purchases and sales
Duty on purchases
Provision for depreciation of motor vehicles
Provision for Doubtful Debts
Discount received
Bad debts
Commission
Debit
Rs
1,000
30,000
7,500
16,750
4,500
6,750
4,550
680
540
1,150
300
21,600
2,160
300
97,780
Credit
Rs
35,000
1,050
45,300
9,000
300
280
1,800
97,780

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