K Dhoni is a business consultant.
The following trial balance is provided at 30 September 20–1:

The following additional information is supplied:

1. At 30 September 20–1 – rent received in advance amounted to $1,800
insurance prepaid amounted to $600
printing expenses owing amounted to $150
loan interest owing amounted to $500.

2. The office equipment is being depreciated at the rate of 10% per annum using the straight line method.

3. The provision for doubtful debts is maintained at 4% of the trade receivables.

a. Prepare the income statement of K Dhoni for the year ended 30 September 20–1.

b. Prepare the statement of financial position of K Dhoni at 30 September 20–1.

Transcribed Image Text:

2$ Capital 94000 Drawings 12250 Premises at cost 82000 Office equipment at cost 19000 Provision for depreciation of office equipment 1900 Trade receivables 5000 Loan (repayable 20-9) 10000 Irrecoverable debts 100 Provision for doubtful debts 150 Fees from clients 75300 Insurance 2400 Printing and stationery 3150 Wages 47000 Office expenses 2950 Rent receivable 5400 Cash 200 Bank 12700 186 750 186 750 %24