Bill always wanted to own and operate his own business, so after graduating from the College of
Question:
Bill always wanted to own and operate his own business, so after graduating from the College of Agriculture in November 2019 he decided to launch his business on January 2, 2020. However, he found that the accounting section can be quite time-consuming. He decides to employ you a fellow classmate with a successful farm business to assist him. You are required to prepare the trading and profit and loss account and the balance sheet for Bills Farm Produce for the year ended December 31, 2020.
ACCOUNTING INFORMATION
building 12000
Capital 65256
carriage inwards 7000
carriages Outwards 3000
Cash at bank 1453
cash in hand 6700
Cash Register 2500
Computer 8000
Delivery truck 2000
Desk 8000
Electricity Bill 1500
land 8000
leases 4000
Long term loans 84890
Machine 23114
mortgage 45990
Opening Stock 20% of the purchase
Property 24567
Purchases 40% of sales
Return inwards 5% sales
Return outwards 1,500
Salary Expenses 12004
Sales 95100
shelves 1500
Short term loan 56220
Water Bill 4567
Core Concepts Of Accounting Information Systems
ISBN: 9780470507025
11th Edition
Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman