From the following trial balance of John Brown ltd prepare an income statement for the year ending
Question:
From the following trial balance of John Brown ltd prepare an income statement for the year ending 31 December 2017, and a balance sheet as of that date
Particulars | Dr. ¢ | Cr.¢ | |
Sales | 400,000 | ||
Purchases | 350,000 | ||
Sales returns | 5,000 | ||
Purchases returns | 6,200 | ||
Opening inventory on 1 January 2007 | 100,000 | ||
Wages and salaries | 30,000 | ||
Rates | 6,000 | ||
Provision for doubtful debts | 800 | ||
Telephone | 1,000 | ||
Shop fittings at cost | 40,000 | ||
Van at cost | 30,000 | ||
Account receivables and payables | 9,800 | 7,000 | |
Bad debts | 200 | ||
Capital | 179,000 | ||
Bank balance | 3,000 | ||
Drawings | 18,000 | ||
593,000 | 593,000 | ||
Closing inventory on 31 December 2007 ¢120,000
The following information is for a wine wholesaler. You are required to use it to prepare a two column cash book.
2018 March
1 Started business with a capital of ¢1,000 cash
2 paid rent by cash ¢230
3 G. Brown lent us ¢2,000 paid by cheque
4 we paid J. Fine by cheque ¢860
5 cash sales ¢190
7 F. Love paid us by cheque ¢34
9 we paid A. Moore in cash ¢93
11 cash sales paid directly into the bank ¢151
15 p. Hood paid us in cash ¢96
16 we took ¢100 out of the cash till and paid it into the bank account
19 we repaid R. Onion ¢500 by cheque
22 cash sales paid directly into the bank ¢122
26 paid motor expenses by cheque ¢75
30 withdrew ¢200 cash from the bank for business use
31 paid wages in cash ¢320
Prepare the double entries for the following transactions using the general journal format:
Date | Particulars | Debit | Credit |
July
1 started the business with ¢5,000 in the bank and ¢1,000 cash
2 bought stationery by cheque ¢75
3 bought goods on credit from t. smart ¢2,100
4 sold goods for cash ¢340
5 paid insurance by cash ¢290
7 bought a computer on credit from j. hot ¢700
10 sold goods on credit to c. Baggins ¢830
11 returned goods to t. smart ¢550
14 paid wages by cash ¢210
17 paid rent by cheque ¢225
20 received cheque ¢400 from c. Baggins
21 paid j. hot by cheque ¢700
23 bought stationery on credit from news ltd ¢125
31 paid news ltd by cheque ¢125
Show the effects of the following transactions on the accounting equation using excel and write up the resultant balance sheet
- June
1 started the business with ¢16,000 in the bank
- bought van paying by cheque ¢6,400
- bought office fixtures ¢900 on credit from old Ltd
- took ¢180 out of the bank and put it into the cash till
- bought a van on credit from carton cars ltd ¢7,100
- bought office fixture paying by cash ¢120
19 paid carton cars ltd a cheque for ¢7100
21 a loan of ¢500 cash is received from B. Berry
25 paid ¢400 of the cash in hand into the bank account
30 bought more office fixtures paying by cheque ¢480
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott