A sole trader requests you to prepare his Trading and Profit & Loss Account for the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A sole trader requests you to prepare his Trading and Profit & Loss Account for the year ended 31st March, 2013 and Balance Sheet as at that date. He provides you the following information: Statement of Affairs as at 31st March, 2012 Assets Liabilities Bank Overdraft Outstanding Expenses Salaries Rent Bills Payable Trade Creditors Capital (balancing figure) 8,000 6,000 Stock Trade Debtors Bills Receivable 4,270 Furniture. Computer Mobile Phone Unexpired Insurance Stock of Stationery Cash at Bank Cash at Hand 14,000 Stock 22,500 Trade Debtors 52,500 Bills Receivable Unexpired Insurance 1,97,430 Stock of Stationery Cash in Hand 2,90,700 Total Total 2,90,700 He informs you that there has been no addition to or sale of Furniture, Computer and Mobile Phone during the accounting year 2012-13. The other assets and liabilities on 31st March, 2013 are as follows: 95,400 65,000 20,000 2,500 250 96,000 24,300 8,000 89,500 55,000 15,000 2,400 18,000 7,230 200 300 Salaries Outstanding Rent Outstanding Bills Payable Trade Creditors He also provides you the following summary of his cash transactions: Receipts Cash Sales Trade Debtors Bills Receivable *Payments 5,09,800 Trade Creditors 1,51,900 Bills Payable 65,000 Salaries Rent 8,300 6,000 26,500 76,000 Insurance Premium Stationery Mobile Phone Expenses Drawings 3,06,000 80,000 99,000 72,000 10,000 1,500 9,000 1,20,000 It is found prudent to depreciate Furniture @ 5%, Computer @ 10% and Mobile Phone @ 25%. A provision for bad debts @ 5% on Trade Debtors is also considered desirable. A sole trader requests you to prepare his Trading and Profit & Loss Account for the year ended 31st March, 2013 and Balance Sheet as at that date. He provides you the following information: Statement of Affairs as at 31st March, 2012 Assets Liabilities Bank Overdraft Outstanding Expenses Salaries Rent Bills Payable Trade Creditors Capital (balancing figure) 8,000 6,000 Stock Trade Debtors Bills Receivable 4,270 Furniture. Computer Mobile Phone Unexpired Insurance Stock of Stationery Cash at Bank Cash at Hand 14,000 Stock 22,500 Trade Debtors 52,500 Bills Receivable Unexpired Insurance 1,97,430 Stock of Stationery Cash in Hand 2,90,700 Total Total 2,90,700 He informs you that there has been no addition to or sale of Furniture, Computer and Mobile Phone during the accounting year 2012-13. The other assets and liabilities on 31st March, 2013 are as follows: 95,400 65,000 20,000 2,500 250 96,000 24,300 8,000 89,500 55,000 15,000 2,400 18,000 7,230 200 300 Salaries Outstanding Rent Outstanding Bills Payable Trade Creditors He also provides you the following summary of his cash transactions: Receipts Cash Sales Trade Debtors Bills Receivable *Payments 5,09,800 Trade Creditors 1,51,900 Bills Payable 65,000 Salaries Rent 8,300 6,000 26,500 76,000 Insurance Premium Stationery Mobile Phone Expenses Drawings 3,06,000 80,000 99,000 72,000 10,000 1,500 9,000 1,20,000 It is found prudent to depreciate Furniture @ 5%, Computer @ 10% and Mobile Phone @ 25%. A provision for bad debts @ 5% on Trade Debtors is also considered desirable.
Expert Answer:
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
Students also viewed these accounting questions
-
Prepare Profit and Loss account for the year ended 31st March, 2011 and Balance Sheet of the Bank as at that date. Profit an Loss Account on 1.4.2016 (e) AIssued Capital (Equity shares of? 100 each)S...
-
The following account balances for the year ended 31st December 2013, relate to Tan Pty Ltd. Additional information at 31 December 2013: Fees of $200,000 included in the above balance of $6,000,000...
-
The account receivables balance for the year ended 31st March 20XX was $ 24,800. Bad debts of $2,800 were written off on this date and an amount of $3,000 in respect of bad debts written of in the...
-
Assuming @Weather is a valid repeatable annotation that takes a String, with its associated containing type annotation @Forecast, which of the following can be applied to a type declaration? (Choose...
-
Choose three major battles of the Civil War. Identify each and thoroughly explain their impact on the war.
-
As described in Sects. 7.2 and 7.4, FRFs are often measured using impact testing. In this approach, an instrumented hammer is used to excite the structure and a transducer is used to record the...
-
The 2014-T6 aluminum hollow section has the cross section shown. If the column is \(10 \mathrm{ft}\) long and is fixed at both ends, determine the allowable axial force \(P\) that can be safely...
-
A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has...
-
Industries react in different ways to business cycle fluctuations in the economy. Some industries are very vulnerable to economic swings, some are relatively immune to them, and others prosper during...
-
Determine V o in the circuit in Fig. 2.80. 14 2 16 2 25 V Vo 10 V +,
-
It is suggested to connect the Mediterranean Sea with the Dead Sea with a closed tunnel and use the potential difference in levels to produce electric energy. What is the diameter required to...
-
At 6.75 percent interest, how long does it take to double your money? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Length of time years At 6.75...
-
Dorsey Company has expanded its operations by purchasing a parcel of land with a building on it from Bibb Company for $94,000. The appraised value of the land is $27,000, and the appraised value of...
-
Write a java program to find out greatest of three numbers using ternary operator?
-
The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T-account for cash (summarized) are below. Martin Company's bank...
-
Write a java program to accept one salary then find out 10% of tax?
-
A warehouse has20,000orders per year with an average of10line items per order. The warehouse experiences800backorders per year averaging5line items per backorder. What level of customer service is...
-
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cashflows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit...
-
Krista Keys Ltd has $2 million spare cash from commissions earned during the busy pre-Christmas season. Staff are paid a retainer, as well as part of the commissions earned through sales. Krista Keys...
-
You have just commenced work as a probationary graduate trainee accountant with QUT partners in Brisbane. Your initial duties are to maintain an accounting worksheet for the partnership. Just prior...
-
Discuss how a budgeting system would assist the Always on Time printing company.
-
The total amount of time required to complete a schedule is called what?
-
A major advantage of using SPT is the minimization of average flowtime. What is a disadvantage of the use of SPT?
-
What priority sequencing rule is usually used to order customers standing in a line?
Study smarter with the SolutionInn App