In January 2020 the following balances among others related to these two accounts is as follows: a.
Question:
In January 2020 the following balances among others related to these two accounts is as follows:
a. Business rates debit balance P210.
b. Packing materials debit balance P740.
During the year ended 31 December 2020 the information related to these two accounts is as follows:
i. Business rates of P1, 920 was paid to cover the period 1 April 2020 to 31 March 2021.
ii. P3, 150 was paid for packing materials bought.
iii. P242 was owing on 31 December 2020 in respect of packing materials bought on credit.
iv. Old materials amounting to P63 were sold as scrap for cash.
v. Closing inventory of packing materials was valued at P690.
You are required to write up the two accounts above showing the appropriate amounts transferred to the income statement at 31 December 2020, the end of the financial year of the trader.
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas