Expert Ans Question 1 The Trial Balance of Kimmy's Junk business as at 31 December year 9

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Question 1 The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR CR Bank 18.010 Capital as at 31 December year 8 Fixture and fitting at cost General expenses 90,950 1.200 14,000 5,000 7,000 3,000 Insurance Interest paid inventory at 31 Dec Year 8 Lightening and heating Loan from Bank of Ruristan Payables Provision for bad debts Accumulated depreciation on delivery van as at 31 Dec year 8 Accumulated depreciation on fixture and fimting as at 31 Dec year 12.000 100,000 32,000 1,880 9,760 720 Accumulated depreciation on premises as at 31 Dec year 8 Purchases 24,000 47,000 Trade receivables 41,100 Sales revenue 225,000 Shop premises at cost Delivery van at cost Wages 300,000 20,000 16,000 484.310 484310 Adjustments 1. Closing inventory as at 31 December Year 9 amounted to £ 4.000. 2. Depreciation is to be provided on shop premises on a straight line basis at 2per cent per annum. 3. Depreciation is to be provided on fixtures and fitings on a straight line basis at 10 per cent per annum. 4. Depreciation is to be provided on the delivery van at 20 per cent per annum on a diminishing balance basis. 5. The electricity bill for the three months ending on 28 February Year 10 amounts to £2,700 and has not yet been recorded in the accounts. 6. The amount shown for insurance includes £ 1.200 for the three-month period I November Year 9 to 31 January Year 10. 7. A specific debt of £ 1,100 is to be written off as irecoverable. 8. The provision for bad debts is to be adjusted to be 5 per cent of receivables. 21Page 9. On 31 December Jimmy took drawings from the business of EIR.000, which have not been recorded. Required: 1. Prepare the Income Statement for the year ended 31 December Year 9 (25 Marks) 2. Prepare the Statement of Financial Position as at 31 December Year 9 (25 Marks) Question 1 The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR CR Bank 18.010 Capital as at 31 December year 8 Fixture and fitting at cost General expenses 90,950 1.200 14,000 5,000 7,000 3,000 Insurance Interest paid inventory at 31 Dec Year 8 Lightening and heating Loan from Bank of Ruristan Payables Provision for bad debts Accumulated depreciation on delivery van as at 31 Dec year 8 Accumulated depreciation on fixture and fimting as at 31 Dec year 12.000 100,000 32,000 1,880 9,760 720 Accumulated depreciation on premises as at 31 Dec year 8 Purchases 24,000 47,000 Trade receivables 41,100 Sales revenue 225,000 Shop premises at cost Delivery van at cost Wages 300,000 20,000 16,000 484.310 484310 Adjustments 1. Closing inventory as at 31 December Year 9 amounted to £ 4.000. 2. Depreciation is to be provided on shop premises on a straight line basis at 2per cent per annum. 3. Depreciation is to be provided on fixtures and fitings on a straight line basis at 10 per cent per annum. 4. Depreciation is to be provided on the delivery van at 20 per cent per annum on a diminishing balance basis. 5. The electricity bill for the three months ending on 28 February Year 10 amounts to £2,700 and has not yet been recorded in the accounts. 6. The amount shown for insurance includes £ 1.200 for the three-month period I November Year 9 to 31 January Year 10. 7. A specific debt of £ 1,100 is to be written off as irecoverable. 8. The provision for bad debts is to be adjusted to be 5 per cent of receivables. 21Page 9. On 31 December Jimmy took drawings from the business of EIR.000, which have not been recorded. Required: 1. Prepare the Income Statement for the year ended 31 December Year 9 (25 Marks) 2. Prepare the Statement of Financial Position as at 31 December Year 9 (25 Marks) Question 1 The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR CR Bank 18.010 Capital as at 31 December year 8 Fixture and fitting at cost General expenses 90,950 1.200 14,000 5,000 7,000 3,000 Insurance Interest paid inventory at 31 Dec Year 8 Lightening and heating Loan from Bank of Ruristan Payables Provision for bad debts Accumulated depreciation on delivery van as at 31 Dec year 8 Accumulated depreciation on fixture and fimting as at 31 Dec year 12.000 100,000 32,000 1,880 9,760 720 Accumulated depreciation on premises as at 31 Dec year 8 Purchases 24,000 47,000 Trade receivables 41,100 Sales revenue 225,000 Shop premises at cost Delivery van at cost Wages 300,000 20,000 16,000 484.310 484310 Adjustments 1. Closing inventory as at 31 December Year 9 amounted to £ 4.000. 2. Depreciation is to be provided on shop premises on a straight line basis at 2per cent per annum. 3. Depreciation is to be provided on fixtures and fitings on a straight line basis at 10 per cent per annum. 4. Depreciation is to be provided on the delivery van at 20 per cent per annum on a diminishing balance basis. 5. The electricity bill for the three months ending on 28 February Year 10 amounts to £2,700 and has not yet been recorded in the accounts. 6. The amount shown for insurance includes £ 1.200 for the three-month period I November Year 9 to 31 January Year 10. 7. A specific debt of £ 1,100 is to be written off as irecoverable. 8. The provision for bad debts is to be adjusted to be 5 per cent of receivables. 21Page 9. On 31 December Jimmy took drawings from the business of EIR.000, which have not been recorded. Required: 1. Prepare the Income Statement for the year ended 31 December Year 9 (25 Marks) 2. Prepare the Statement of Financial Position as at 31 December Year 9 (25 Marks) Question 1 The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR CR Bank 18.010 Capital as at 31 December year 8 Fixture and fitting at cost General expenses 90,950 1.200 14,000 5,000 7,000 3,000 Insurance Interest paid inventory at 31 Dec Year 8 Lightening and heating Loan from Bank of Ruristan Payables Provision for bad debts Accumulated depreciation on delivery van as at 31 Dec year 8 Accumulated depreciation on fixture and fimting as at 31 Dec year 12.000 100,000 32,000 1,880 9,760 720 Accumulated depreciation on premises as at 31 Dec year 8 Purchases 24,000 47,000 Trade receivables 41,100 Sales revenue 225,000 Shop premises at cost Delivery van at cost Wages 300,000 20,000 16,000 484.310 484310 Adjustments 1. Closing inventory as at 31 December Year 9 amounted to £ 4.000. 2. Depreciation is to be provided on shop premises on a straight line basis at 2per cent per annum. 3. Depreciation is to be provided on fixtures and fitings on a straight line basis at 10 per cent per annum. 4. Depreciation is to be provided on the delivery van at 20 per cent per annum on a diminishing balance basis. 5. The electricity bill for the three months ending on 28 February Year 10 amounts to £2,700 and has not yet been recorded in the accounts. 6. The amount shown for insurance includes £ 1.200 for the three-month period I November Year 9 to 31 January Year 10. 7. A specific debt of £ 1,100 is to be written off as irecoverable. 8. The provision for bad debts is to be adjusted to be 5 per cent of receivables. 21Page 9. On 31 December Jimmy took drawings from the business of EIR.000, which have not been recorded. Required: 1. Prepare the Income Statement for the year ended 31 December Year 9 (25 Marks) 2. Prepare the Statement of Financial Position as at 31 December Year 9 (25 Marks)

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Solution 1 INCOME STATEMENT OF JIMMYS JUNK FOR THE YEAR ENDED 31 DECEMBER YEAR 9 Particulars Amount in Amount in Amount in Sales revenue 225000 Openin... View the full answer