Dr James Smith has a successful dental practice. An extract was taken from his records. These balances, excluding the capital
Dr James Smith has a successful dental practice. An extract was taken from his records. These balances, excluding the capital invested, were extracted for March:
Transactions for March (source document numbers in brackets):
2 Dr Smith increased his capital by depositing R1 000 in his the bank account (D/S 71).
8 Total of cash received from patients R760 (C/S 110–120).
12 Sold an old typewriter at carrying value and received R300 (R11).
16 P. Platt paid R200 on account (R12).
Banked all cash in till received from patients, R640 (C/S 121–130).
20 Sold old dental equipment at carrying value to Dr P. Bandy and received his cheque for R2 000 (R13).
22 Received a cheque from G. Grey for R650 in full settlement of his account (R14).
24 Mrs L. Brown sent us a cheque for R100 for the rental of the storeroom let to her (R15).
26 Paid by EFT:
You are required to:
1. Enter the transactions into the ledger accounts.
2. Prepare the trial balance.
3. Prepare a statement of profit or loss & other comprehensive income and statement of financial position for Dr Smith as at 31 March.
This problem has been solved!
Step by Step Answer: