The trial balance of BCB Limited as at 31 December 2020 appeared as follows: Dr Cr Share capital 120,000 Sales revenue 617,100 Purchases 223,500 You are provided with the following information. Returns inwards 4,800 1. 5,500 The provision for doubtful debts is to be adjusted Returns outwards Provision for doubtful debts 50.as to represent 8% of trade receivables. 2,000 2. Bad Debt of £1,200 to be written off. Bank 45,000 Inventory 46,000 3. Equipment's are to be depreciated by 20% using Motor Vehicles at Cost 75,000 the straight-line method. Motor Vehicles - 27,000 4. Motor vehicles are to be depreciated by 20% Accumulated Depreciation Equipment at cost Equipment - Accumulated Depreciation Trade Payables Trade Receivables using the reducing balance method. 290,500 36,200 5. Outstanding bills for the period: Electricity - £725 6. 24,000 Insurance has been paid up until 31 March 2021. 36,000 7. The closing inventory was valued at £39,000. 10% loan 40,000 10% loan interest 2,000 Required: prepare for the year ended 31 December 2020 - using the above information: Wages and salaries Telephone Light & Heat 91,500 1,800 26,000 Insurance 15,000 A Statement of Financial Position Repairs & maintenance Advertising Bad debts expense 7,400 4,000 3,300 871,800 871,800
The trial balance of BCB Limited as at 31 December 2020 appeared as follows: Dr Cr Share capital 120,000 Sales revenue 617,100 Purchases 223,500 You are provided with the following information. Returns inwards 4,800 1. 5,500 The provision for doubtful debts is to be adjusted Returns outwards Provision for doubtful debts 50.as to represent 8% of trade receivables. 2,000 2. Bad Debt of £1,200 to be written off. Bank 45,000 Inventory 46,000 3. Equipment's are to be depreciated by 20% using Motor Vehicles at Cost 75,000 the straight-line method. Motor Vehicles - 27,000 4. Motor vehicles are to be depreciated by 20% Accumulated Depreciation Equipment at cost Equipment - Accumulated Depreciation Trade Payables Trade Receivables using the reducing balance method. 290,500 36,200 5. Outstanding bills for the period: Electricity - £725 6. 24,000 Insurance has been paid up until 31 March 2021. 36,000 7. The closing inventory was valued at £39,000. 10% loan 40,000 10% loan interest 2,000 Required: prepare for the year ended 31 December 2020 - using the above information: Wages and salaries Telephone Light & Heat 91,500 1,800 26,000 Insurance 15,000 A Statement of Financial Position Repairs & maintenance Advertising Bad debts expense 7,400 4,000 3,300 871,800 871,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The trial balance of BCB Limited as at 31 December 2020 appeared as follows:
Dr
Cr
Share capital
120,000
617,100
Sales revenue
Purchases
223,500
You are provided with the following information.
Returns inwards
4,800
Returns outwards
Provision for doubtful
1.
5,500
The provision for doubtful debts is to be adjusted
50.as to represent 8% of trade receivables.
2,000
debts
2.
Bad Debt of £1,200 to be written off.
Bank
45,000
Inventory
46,000
3.
Equipment's are to be depreciated by 20% using
Motor Vehicles at Cost
75,000
the straight-line method.
Motor Vehicles-
Accumulated Depreciation
27,000
4.
Motor vehicles are to be depreciated by 20%
using the reducing balance method.
Equipment at cost
Equipment - Accumulated
Depreciation
Trade Payables
290,500
36,200
5.
Outstanding bills for the period: Electricity - £725
6.
24,000
Insurance has been paid up until 31 March 2021.
Trade Receivables
36,000
7.
The closing inventory was valued at £39,000.
10% loan
40,000
10% loan interest
2,000
91,500
Required: prepare for the year ended 31 December 2020
- using the above information:
Wages and salaries
Telephone
Light & Heat
1,800
26,000
Insurance
15,000
A Statement of Financial Position
Repairs & maintenance
Advertising
Bad debts expense
7,400
4,000
3,300
871,800
871,800
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