WESTION TWOThe following is a trail balance of ACC Limited for the year ended 31 December 2014:BALANCE SHEET ACCOUNTSCapitalDrawingsLand and buildings (at cost)Vehicles (at cost)Furniture (at cost)BankDebtorsStock ( 1/01/2014)CreditorsAccumulated Depreciation: VehiclesAccumulated Depreciation: FurnitureNOMINAL ACCOUNTSSalesSales returnsCommission IncomeRent receivedPurchasesPurchases ReturnsBad Debts/credit lossesInsurancePacking materialSalariesWater and electricityAdditional information:12.Inventory on 31 December 2014 Trading inventoryPacking MaterialDebtor Jacob is insolvent. His debt of R140 has been written off as irrecoverable3. Provision must be made for depreciation as follows.Vehicles 20% on diminishing balance method/reducing balance.b. Furniture 10% Straight Line method.M14°C Partly cloudy.250 0004 400180 000120 00015 0005.90040 1404. A Debtor, Mr Fletcher who wed R230 finally managed to pay his debt that was previously writtenoff as irrecoverable in 2010. This was not considered in the above trail balance.REQUIREDPrepare the Statement of Comprehensive Income for ACC Limited for the year ended 31 December4) E

A financial document known as a statement of comprehensive income lists a company's revenues, costs,…

Vehicles 20% on diminishing balance method/reducing balance. b. Furniture 10% Straight Line method. 4. A Debtor, Mr Fletcher who wed R230 finally managed to pay his debt that was previously written off as irrecoverable in 2010. This was not considered in the above trail balance. REQUIRED Prepare the Statement of Comprehensive Income for ACC Limited for the year ended 31 December 2014.

Vehicles 20% on diminishing balance method/reducing balance. b. Furniture 10% Straight Line method. 4. A Debtor, Mr Fletcher who wed R230 finally managed to pay his debt that was previously written off as irrecoverable in 2010. This was not considered in the above trail balance. REQUIRED Prepare the Statement of Comprehensive Income for ACC Limited for the year ended 31 December 2014.

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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