The following is the Trial Balance for Mina Traders as at 30th April 2020 Particulars DR. CR. € € Inventory as at 30th March 2019 18,000 Capital Cash at hand 70,000 2,400 900 1,300 Discount allowed Salaries Sales Accounts payable Land & Buildings 47,200 36,000 50,000 18,000 Furniture Bank loan 20,000 Plant & Machinery 22,000 25,000 Accounts Receivables Discount received 1,500 2,200 850 Returns outwards Interest paid Bad debts Printing & Stationery Purchases Returns inwards Wages 650 1,200 32,000 1,800 2,800 176,900 176,900 Notes to the end year financial Report: (a) The inventory at hand on 30th April 2020 was valued at €29,000 (b) Outstanding Salary was €700 (c) Wages paid in advance to employees was €1,200 (d) Depreciate land & Buildings at 5%, and plant & machinery at €10% p.a using straight line method (e) Write off €1,000 for further Bad debts. Prepare Mina Traders Income Statement (Trading, Profit & Loss Account) for the year ended 30th April 2020 (ii) Prepare A balance sheet for Mina Traders as at 30th April 2020 (ii) With relevant literature explain advance payments also known as prepayments. What accounting concept guided your treatment of the prepaid expenses. Demonstrate your answer with reference to your answer to the Income statement and the Balance sheet. (i) (iv) With relevant literature explain outstanding payments also known as accruals. What accounting concept guided your treatment of the accrued expenses. Demonstrate your answer with reference to your answer to the Income statement and the Balance sheet.
The following is the Trial Balance for Mina Traders as at 30th April 2020 Particulars DR. CR. € € Inventory as at 30th March 2019 18,000 Capital Cash at hand 70,000 2,400 900 1,300 Discount allowed Salaries Sales Accounts payable Land & Buildings 47,200 36,000 50,000 18,000 Furniture Bank loan 20,000 Plant & Machinery 22,000 25,000 Accounts Receivables Discount received 1,500 2,200 850 Returns outwards Interest paid Bad debts Printing & Stationery Purchases Returns inwards Wages 650 1,200 32,000 1,800 2,800 176,900 176,900 Notes to the end year financial Report: (a) The inventory at hand on 30th April 2020 was valued at €29,000 (b) Outstanding Salary was €700 (c) Wages paid in advance to employees was €1,200 (d) Depreciate land & Buildings at 5%, and plant & machinery at €10% p.a using straight line method (e) Write off €1,000 for further Bad debts. Prepare Mina Traders Income Statement (Trading, Profit & Loss Account) for the year ended 30th April 2020 (ii) Prepare A balance sheet for Mina Traders as at 30th April 2020 (ii) With relevant literature explain advance payments also known as prepayments. What accounting concept guided your treatment of the prepaid expenses. Demonstrate your answer with reference to your answer to the Income statement and the Balance sheet. (i) (iv) With relevant literature explain outstanding payments also known as accruals. What accounting concept guided your treatment of the accrued expenses. Demonstrate your answer with reference to your answer to the Income statement and the Balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The following is the Trial Balance for Mina Traders as at 30th April 2020
Particulars
DR.
€
CR.
€
Inventory as at 30th March 2019
Сapital
Cash at hand
18,000
70,000
2,400
900
Discount allowed
Salaries
Sales
1,300
47,200
36,000
Accounts payable
Land & Buildings
Furniture
Bank loan
Plant & Machinery
50,000
18,000
20,000
22,000
25,000
Accounts Receivables
Discount received
1,500
2,200
850
Returns outwards
Interest paid
Bad debts
650
Printing & Stationery
Purchases
1,200
32,000
1,800
2,800
176,900
Returns inwards
Wages
176,900
Notes to the end year financial Report:
(a) The inventory at hand on 30th April 2020 was valued at €29,000
(b) Outstanding Salary was €700
(c) Wages paid in advance to employees was €1,200
(d) Depreciate land & Buildings at 5%, and plant & machinery at €10% p.a using
straight line method
(e) Write off €1,000 for further Bad debts.
(i)
Prepare Mina Traders Income Statement (Trading, Profit & Loss Account) for the
year ended 30th April 2020
(ii) Prepare A balance sheet for Mina Traders as at 30th April 2020
(iii) With relevant literature explain advance payments also known as prepayments.
What accounting concept guided your treatment of the prepaid expenses.
Demonstrate your answer with reference to your answer to the Income statement
and the Balance sheet.
(iv) With relevant literature explain outstanding payments also known as accruals.
What accounting concept guided your treatment of the accrued expenses.
Demonstrate your answer with reference to your answer to the Income statement
and the Balance sheet.
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