1. The following Trial Balance was extracted from the books of ABC Limited on 31 December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. The following Trial Balance was extracted from the books of ABC Limited on 31 December 2020. Details Capital (1 January 2020) Drawings Stock (1 January 2020) Purchases Debtors Creditors Sales Premises Office Equipment Bank Sales Returns Purchases Returns Salaries Commission Insurance Advertising Carriage Inwards Carriage Outwards Discount allowed Discount received Bad Debts Water and electricity Trial Balance as at 31 December 2020 Debit $ (1) (ii) 1,675 13,000 60,000 3,800 Accrued salaries amounted to $500 Prepaid insurance amounted to $125. 25,000 3,500 1,655 435 6,000 395 1,350 240 400 230 The following additional information is to be taken into account: Stock on 31 December 2020 was valued at $12,500. 300 750 118,730 Credit $ 30,000 4,490 80,800 600 2,700 140 118,730 (iv) (v) Office equipment is to be depreciated at 20% per annum. Provision for doubtful debts at 5% of the debtors is to be created. You are required to prepare the following: (a) Income Statement for the year ended 31 December 2020. (18 marks) (b) Balance Sheet as at 31 December 2020. (10 marks) 3. Date Dec 01 Dec 20 Dec 28 2020 Dec 1 Balance B/F Dec 08 J. Gordon Dec 21 Deposit Dec 28 Deposit Dec 29 K. Hughes Dec 30 P. Smith Dec 31 Bank Charges Details Balance B/F P. Thomas D. Jones Bank Statement Withdrawals (Debit) $65 $175 $50 $ 250 100 190 Cash Book Date Dec 05 Dec 27 Deposits (Credit) $100 $190 $70 Details J. Gordon K. Hughes Required: 1. Update the cash book for 2020 and show the new balance. (5 marks) 2. Prepare a Bank Reconciliation Statement for December 31", 2020 (5 marks) Balance $250 $185 $285 $475 $300 $370 $320 $ 65 175 5. a. List the various taxes paid by a business. b. Under what situations are you exempt from paying health surcharge taxes? c. What are the rate of health surcharge paid by employees and employers and how often is this payment remitted to the tax authorities by a self-employed person. d. Describe the penalties associated with not paying health surcharge. e. Define capital gains and state how this is treated with regards to individual taxation (20 marks) 1. The following Trial Balance was extracted from the books of ABC Limited on 31 December 2020. Details Capital (1 January 2020) Drawings Stock (1 January 2020) Purchases Debtors Creditors Sales Premises Office Equipment Bank Sales Returns Purchases Returns Salaries Commission Insurance Advertising Carriage Inwards Carriage Outwards Discount allowed Discount received Bad Debts Water and electricity Trial Balance as at 31 December 2020 Debit $ (1) (ii) 1,675 13,000 60,000 3,800 Accrued salaries amounted to $500 Prepaid insurance amounted to $125. 25,000 3,500 1,655 435 6,000 395 1,350 240 400 230 The following additional information is to be taken into account: Stock on 31 December 2020 was valued at $12,500. 300 750 118,730 Credit $ 30,000 4,490 80,800 600 2,700 140 118,730 (iv) (v) Office equipment is to be depreciated at 20% per annum. Provision for doubtful debts at 5% of the debtors is to be created. You are required to prepare the following: (a) Income Statement for the year ended 31 December 2020. (18 marks) (b) Balance Sheet as at 31 December 2020. (10 marks) 3. Date Dec 01 Dec 20 Dec 28 2020 Dec 1 Balance B/F Dec 08 J. Gordon Dec 21 Deposit Dec 28 Deposit Dec 29 K. Hughes Dec 30 P. Smith Dec 31 Bank Charges Details Balance B/F P. Thomas D. Jones Bank Statement Withdrawals (Debit) $65 $175 $50 $ 250 100 190 Cash Book Date Dec 05 Dec 27 Deposits (Credit) $100 $190 $70 Details J. Gordon K. Hughes Required: 1. Update the cash book for 2020 and show the new balance. (5 marks) 2. Prepare a Bank Reconciliation Statement for December 31", 2020 (5 marks) Balance $250 $185 $285 $475 $300 $370 $320 $ 65 175 5. a. List the various taxes paid by a business. b. Under what situations are you exempt from paying health surcharge taxes? c. What are the rate of health surcharge paid by employees and employers and how often is this payment remitted to the tax authorities by a self-employed person. d. Describe the penalties associated with not paying health surcharge. e. Define capital gains and state how this is treated with regards to individual taxation (20 marks)
Expert Answer:
Answer rating: 100% (QA)
Unadjusted Trial Balance Adjustments Adjusted Trial Balance Details Dr Cr Dr Cr Dr Cr Capital1 January 2020 30000 30000 Drawings 1675 1675 Stock1 January 2020 13000 13000 Purchases 60000 60000 Debtors ... View the full answer
Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Posted Date:
Students also viewed these accounting questions
-
Lime's business has had liquidity problems for some months. The following trial balance was extracted from his books of account as at 30 September 2012: Additional information: 1. Stock at 30...
-
Find the equation of line which passes through (1, 1) and tangent of the circle x + y = 4 at point (1,1)
-
Puan Meera Afendy owns boutique, Cempaka Sari, at SACC Mall. The boutique sells ladies clothes and accessories. The following trial balance was extracted from the books of Cempaka Sara as at 31...
-
Problems 113 122. The purpose of these problems is to keep the material fresh in your mind so that you are better prepared for later sections, a final exam, or subsequent courses such as calculus. X...
-
What is the main difference between the periodic system of accounting for inventory and the perpetual system of accounting for inventory?
-
What factors lead to an increase in the banks liquidity risk and why is it important for the economy that banks take on liquidity risk?
-
A project has been selected for implementation. The net cash flow (NCF) profile associated with the project is shown below. MARR is 10 percent/year. a. What is the internal rate of return of this...
-
Heather Adams, production manager for a Colorado exercise equipment manufacturer, needs to schedule an order for 50 UltimaSteppers, which are to be shipped in week 8. Subscripts indicate quantity...
-
Map the EER model of the following databases, to a relational model. Show all integrity types(Clarify your answer by underline the Primary key, and dotted line the Foreign Key. ( Member SSN {PK}...
-
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the...
-
If the number of minutes a doctor spends with a patient is a random variable having an exponential distribution with the parameter = 9n, what are the probabilities that it will take the doctor at...
-
What are three unique benefits of the Palo Alto Networks Content-ID? Detecting and preventing known and unknown threats in a single pass. Proactively identifying and defending against unknown, new,...
-
One person has carried out the roles of CEO and chairman since the incorporation of Value Pty (Ltd) 10 years ago. Recently, analysts have begun to criticise this policy explaining that since the CEO...
-
Developing a diverse workforce has always been a challenging objective. Considering gender, race, ethnicity, religion and sexual preference are but some of the areas of concern to consider. We have...
-
Compare and contrast the traditional UCR and the enhanced UCR/NIBRS program, discussing three of the differences between the two programs. Discuss the limitations of the UCR system that led to the...
-
Please read and answer: The Centennial Company manufactured small electrical appliances for the consumer market. Its major product line consisted of several models of electric shavers for both men...
-
Consider parallel execution of an MPI-coded C program in SPMD (single program and multiple data streams) mode on a server cluster consisting of n identical Linux servers. SPMD mode means the same MPI...
-
Read the case study Richter: Information Technology at Hungarys Largest Pharma and answer the following question: How does the organization ensure the accuracy of the data it stores?
-
A. Black & Co. Ltd owned two machines that had been purchased on 1 October 20X8 at a combined cost of 3,100 ex works. They were identical as regards size and capacity and had been erected and brought...
-
Describe the characteristics of companies limited by shares.
-
The following trial balance has been prepared from the books and records of Sulphur Products as at 30 September 20X9. We are also told that the figures have to be amended to take into account further...
-
Using the data from Table 2, construct a \(95 \%\) confidence interval estimate of the mean difference, \(\mu_{d}\). By Hand Approach Step 1 Compute the differenced data. Because the sample size is...
-
Problem Decide whether the sampling method is independent or dependent. Then determine whether the response variable is qualitative or quantitative. (a) Joliet Junior College decided to implement a...
-
In the Spacelab Life Sciences 2 payload, 14 male rats were sent to space. Upon their return, the red blood cell mass (in milliliters) of the rats was determined. A control group of 14 male rats was...
Study smarter with the SolutionInn App