1. The following Trial Balance was extracted from the books of ABC Limited on 31 December...
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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:
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