Wilhelmina is a trader whose financial year ends on 31 March. Her trial balance at 31 March

Question:

Wilhelmina is a trader whose financial year ends on 31 March. Her trial balance at 31 March 2004 was as follows.


Further information 

1. Stock at 31 March 2004 cost $16.000. 

2. The loan was received in 2001 and is repayable in 2006. Interest on the loan is at the rate of 10% per annum. 

3. Plant and machinery includes $6000 for a machine bought on hire purchase on 1 January 2004. The cash price of the machine is $30 000. The balance is payable in four quarterly instalments of $6200, including interest, on 1 April 2004, 1 July 2004, 1 October 2004 and 1 January 2005. 

4. The leasehold property was acquired on 1 October 1998 for a period of 15 years. It is being amortised on the straight-line basis.

5. Plant and machinery are depreciated on the reducing- balance method using the annual rate of 25%. 

6. Office equipment is depreciated at 15% per annum on the straight-line basis. 7. At 31 March 2004, $300 was owing for electricity, and sundry expenses of $180 had been prepaid. 


Required 

(a) Prepare Wilhelmina's Trading and Profit and Loss Account for the year ended 31 March 2004. 

(b) Prepare the Balance Sheet at 31 March 2004.

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