Required : a) Prepare a statement of profit or loss account for the year ended 31 May
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Required:
a) Prepare a statement of profit or loss account for the year ended 31 May 2019.
b) Prepare a statement of financial position as at 31 May 2019.
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Question 1 The following trial balance has been extracted from the ledger of ITCL sole trader. Trial Balance as at 31 May 2019 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Credit losses Allowance for credit losses Accounts receivables Accounts payables Cash in hand Cash at bank Inventory as at 1 June 2018 Equipment at cost accumulated depreciation Capital (iv) Dr 82 350 5 144 7 800 6 622 3 001 1 330 26 420 877 12 120 177 1 002 11 927 58 000 216 770 Cr 138 078 130 6471 19 000 53 091 216 770 The following additional information as at 31 May 2019 is available: (i) Rent is accrued by N$210. (ii) Rates have been prepaid by N$880. N$2 211 of carriage represents carriage inwards on purchases. Equipment is to be depreciated at 15% per annum using the straight line method. The provision for doubtful debts to be increased by N$40. (vi) Inventory at the close of business has been valued at N$13 551. Question 1 The following trial balance has been extracted from the ledger of ITCL sole trader. Trial Balance as at 31 May 2019 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Credit losses Allowance for credit losses Accounts receivables Accounts payables Cash in hand Cash at bank Inventory as at 1 June 2018 Equipment at cost accumulated depreciation Capital (iv) Dr 82 350 5 144 7 800 6 622 3 001 1 330 26 420 877 12 120 177 1 002 11 927 58 000 216 770 Cr 138 078 130 6471 19 000 53 091 216 770 The following additional information as at 31 May 2019 is available: (i) Rent is accrued by N$210. (ii) Rates have been prepaid by N$880. N$2 211 of carriage represents carriage inwards on purchases. Equipment is to be depreciated at 15% per annum using the straight line method. The provision for doubtful debts to be increased by N$40. (vi) Inventory at the close of business has been valued at N$13 551.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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