DreamBuild Construction Company has been in business for many years. His accountant has

extracted the following trial balance from his books of account as at $31$ March $2022$:

OMR OMR

Debtor Creditor

Bank $2,400$

Capital $66,000$

Cash $600$

Drawings $12,000$

Insurance $4,000$

Office expenses $30,000$

Office furniture at cost $10,000$

Office furniture: accumulated depreciation at $1$ April $20214,000$

Provision for bad and doubtful debts at $1$ April $20211,000$

Purchases $110,000$

Salaries $50,000$

Sales $200,000$

Stock at $1$ April $202120,000$

Trade creditors $8,000$

Trade debtors $40,000$

$$

$279,000279,000$

Notes: The following additional information is to be considered:

$1.$ Stock at $31$ March $2022$ was valued at OMR $30,000.$

$2.$ The insurance included OMR $1,000$ worth of cover which related to the year to $31$ March

$2022.$

$3.$ Depreciation is charged on office furniture at $5\%$ per annum of its original cost $($it is

assumed not to have any residual value$).$

$4.$ A bad debt of OMR $2,000$ included in the trade debtors balance of OMR $40,000$ is to be

written off.

$5.$ The provision for bad and doubtful debts is to be maintained at a level of $2\mathrm{.}5\%$ of

outstanding trade debtors as at $31$ March $2022,$ i$.$e$.$ after excluding the bad debt referred

to in note $4$ above.

$6.$ At $31$ March $2022,$ there was an amount owing for salaries of OMR$2,000.$

DreamBuild Construction Company has been in business for many years. His accountant has extracted the following trial balance from his books of account as at $31$ March $2022$:

Military Technological College $-$ O

Notes: The following additional information is to be considered:

Stock at $31$ March $2022$ was valued at OMR $30,000.$

The insurance included OMR $1,000$ worth of cover which related to the year to $31$ March $2022.$

Depreciation is charged on office furniture at $5\%$ per annum of its original cost $($it is assumed not to have any residual value$).$

A bad debt of OMR $2,000$ included in the trade debtors balance of OMR $40,000$ is to be written off.

The provision for bad and doubtful debts is to be maintained at a level of $2\mathrm{.}5\%$ of outstanding trade debtors as at $31$ March $2022,$ i$.$e$.$ after excluding the bad debt referred to in note $4$ above.

At $31$ March $2022,$ there was an amount owing for salaries of OMR$2,000.$

Required:

From the above information prepare the following:

A$.$ Trading Account

$[10$ marks$]$

B$.$ Profit and Loss Account

$[10$ marks$]$

C$.$ Balance sheet

Answer rating: 100% (QA)

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