J. Graham drew up the following trial balance as at 30 September 2008. You are to...

 

Transcribed Image Text:

J. Graham drew up the following trial balance as at 30 September 2008. You are to draft a trading and profit and loss account for the year to 30 September 2008 and a balance sheet as at that date Loan from P. Parkin Capital Drawings Cash at bank- Cash in hand Debtors Creditors Stock 30 September 2007 Motor van Office equipment Provision for depreciation: motor van Provision for depreciation: office equipment Sales Purchases Returns inwards Carriage inwards Returns outwards Carriage outwards Motor expenses Rent and rates Telephone charges Wages Insurance Office expenses Sundry expenses Dr 5 8,420 3,115 295 12.300 23,910 6,000 8,000 92,100 550 215 309 1,630 2,970 405 12,810 492 1,377 284 175,182 Cr $ 5,000 25,955 9,370 1,900 1,750 130,900 307 175,182 Notes at 30 September 2008. a) Prepaid expenses insurance, $105; rates, $405. b) Expenses owing rent, $300, telephone, $85. Stock, $27,475. d) Depreciate motor van and office equipment at the rate of 20% on original cost. Wehner at 11 Decembe J. Graham drew up the following trial balance as at 30 September 2008. You are to draft a trading and profit and loss account for the year to 30 September 2008 and a balance sheet as at that date Loan from P. Parkin Capital Drawings Cash at bank- Cash in hand Debtors Creditors Stock 30 September 2007 Motor van Office equipment Provision for depreciation: motor van Provision for depreciation: office equipment Sales Purchases Returns inwards Carriage inwards Returns outwards Carriage outwards Motor expenses Rent and rates Telephone charges Wages Insurance Office expenses Sundry expenses Dr 5 8,420 3,115 295 12.300 23,910 6,000 8,000 92,100 550 215 309 1,630 2,970 405 12,810 492 1,377 284 175,182 Cr $ 5,000 25,955 9,370 1,900 1,750 130,900 307 175,182 Notes at 30 September 2008. a) Prepaid expenses insurance, $105; rates, $405. b) Expenses owing rent, $300, telephone, $85. Stock, $27,475. d) Depreciate motor van and office equipment at the rate of 20% on original cost. Wehner at 11 Decembe

Answer rating: 100% (QA)

SOLUTION To draft the trading and profit and loss account for the year ended 30 September 2008 and the balance sheet as at that date we will use the trial balance provided Well also take into account ... View the full answer