Unit 22 - Adjustments to Financial Statements Q. 22/3 B. Vella is a sole proprietor is a dealer in sports wear. His financial year runs to 31st December each year. The following is his Trial Balance on 31st Trial Balance as at 31st December 2006 Q. 22/4 Bernar followin Decem € € 6,000 Shop Fittings (at cost) Accumulated Depreciation on Shop Fittings 1,200 26,400 Trade Receivables 594 Discount received 60,000 Buildings 1,440 Purchases Returns 516 Carriage on Purchases 660 Insurance 6,000 Office salaries and expenses Trade Payables 5,766 16,800 Drawings Sales 74,160 Lighting and Heating 3,234 Inventory 1st January 2006 5,640 Discount allowed 372 Purchases 42,840 Capital 88,236 Rent 2,160 Bank 1,494 Allowance for Doubtful Debts 720 172,116 172,116 Th tra i) Notes at 31st December 2006: a) Inventory as at 31st December 2006 amounts to €6,180 b) Rent prepaid amounts to €150. c) Lighting and Heating outstanding €80. d) Depreciation on Shop Fittings is calculated at 10% per annum (Reducing Balance Method). There is no depreciation on Buildings. e) Allowance for Doubtful Debts is to be increased by €80. You are required to draw up an Income Statement for the year ended 31st December 2006 and a Statement of Financial Position as at that date taking into consideration the notes at the end of the year. ii) iii) iv) v) You a a) b) 204
Unit 22 - Adjustments to Financial Statements Q. 22/3 B. Vella is a sole proprietor is a dealer in sports wear. His financial year runs to 31st December each year. The following is his Trial Balance on 31st Trial Balance as at 31st December 2006 Q. 22/4 Bernar followin Decem € € 6,000 Shop Fittings (at cost) Accumulated Depreciation on Shop Fittings 1,200 26,400 Trade Receivables 594 Discount received 60,000 Buildings 1,440 Purchases Returns 516 Carriage on Purchases 660 Insurance 6,000 Office salaries and expenses Trade Payables 5,766 16,800 Drawings Sales 74,160 Lighting and Heating 3,234 Inventory 1st January 2006 5,640 Discount allowed 372 Purchases 42,840 Capital 88,236 Rent 2,160 Bank 1,494 Allowance for Doubtful Debts 720 172,116 172,116 Th tra i) Notes at 31st December 2006: a) Inventory as at 31st December 2006 amounts to €6,180 b) Rent prepaid amounts to €150. c) Lighting and Heating outstanding €80. d) Depreciation on Shop Fittings is calculated at 10% per annum (Reducing Balance Method). There is no depreciation on Buildings. e) Allowance for Doubtful Debts is to be increased by €80. You are required to draw up an Income Statement for the year ended 31st December 2006 and a Statement of Financial Position as at that date taking into consideration the notes at the end of the year. ii) iii) iv) v) You a a) b) 204
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.1DC: Reading 3M Companys Balance Sheet: Accounts Receivable The following current asset appears on the...
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Draw up the statement of
Transcribed Image Text:Unit 22 - Adjustments to Financial Statements
Q. 22/3
B. Vella is a sole proprietor is a dealer in sports wear. His financial year runs
to 31st December each year. The following is his Trial Balance on 31st
Trial Balance as at 31st December 2006
Q. 22/4
Bernar
followin
Decem
€
€
6,000
Shop Fittings (at cost)
Accumulated Depreciation on Shop Fittings
1,200
26,400
Trade Receivables
594
Discount received
60,000
Buildings
1,440
Purchases Returns
516
Carriage on Purchases
660
Insurance
6,000
Office salaries and expenses
Trade Payables
5,766
16,800
Drawings
Sales
74,160
Lighting and Heating
3,234
Inventory 1st January 2006
5,640
Discount allowed
372
Purchases
42,840
Capital
88,236
Rent
2,160
Bank
1,494
Allowance for Doubtful Debts
720
172,116 172,116
Th
tra
i)
Notes at 31st December 2006:
a) Inventory as at 31st December 2006 amounts to €6,180
b)
Rent prepaid amounts to €150.
c) Lighting and Heating outstanding €80.
d) Depreciation on Shop Fittings is calculated at 10% per annum (Reducing
Balance Method). There is no depreciation on Buildings.
e) Allowance for Doubtful Debts is to be increased by €80.
You are required to draw up an Income Statement for the year ended 31st
December 2006 and a Statement of Financial Position as at that date taking
into consideration the notes at the end of the year.
ii)
iii)
iv)
v)
You a
a)
b)
204
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