Judy Kay, a Partnership Organisation having trial balance for December 2022: The following information was obtained after
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Question:
Judy Kay, a Partnership Organisation having trial balance for December 2022:
The following information was obtained after the trial balance had been prepared:
- 1.Stock as of 31st December 2022 is £3,600
- 2. Furniture is to be depreciated at a rate of 15 per cent on cost
- 3.As of 31st December 2022, Judy Kay owed £600 for telephone expenses, and insurance had been prepaid by £240
- 4.Bad debts of £1,200 should be written off and it is Judy Kay’s policy to maintain a provision for doubtful debts of 5% of remaining debtors (after bad debts have been written off)
- 5.Judy Kay have decided to charge interest on drawings at 5 per cent per annum, irrespective of when the drawing occur. Kay withdrew £1,200 from the business for private use on 1st November 2022.
- Required:
a. Prepare the Statement of Profit and Loss (Income Statement)
b. Statement of Financial Position (Balance Sheet)
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date: