The following trial balance was obtained from the books of Marlon Deb as at December 31,...

 

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The following trial balance was obtained from the books of Marlon Deb as at December 31, 2020: DETAILS Cash Land and Building Provision for Depreciation on Building Motor Vehicle Provision for Depreciation on Motor Vehicle Machinery and Equipment Provision for Depreciation on Machinery & Equipment Capital Drawings 10% Loan Motor Vehicle Repairs Commission Received Opening Stock Insurance Bad Debts Sales Wages and Salaries Carriage Inwards Discount Received Loan Interest Creditors Returns Rent Received Purchases Debtors Provision for Bad Debts Telephone Charges Bank DR 15,000 420,000 ASSET Land and Building Motor Vehicle 310,000 RATE METHOD 10% Reducing Balance 5% Straight Line Machinery and Equipment 5% Reducing Balance 285,000 22,500 37,250 60,500 32,000 8,500 65,000 14,000 24,000 7,000 410,000 70,000 18,000 CR 64,000 45,000 57,000 425,000 300,000 65,000 630,500 17,000 52,500 8,500 45,000 4,200 Additional Notes a. Stock at year end was valued at $85,000 b. Wages is owing by $15,000 c. Insurance is prepaid by $3,000 d. During the year the owner took goods values at $12,500. This was not yet recorded 85,050 1,798,750 1,798,750 e. The rent received is prepaid by $12,000 f. Commission income is owing by $15,000 g. The provision for bad debts is to be adjusted to 5% of debtors h. Depreciation charges are to be applied as follows Prepare the following: Statement of Profit and Loss for the year ending December 31, 2020 Statement of Financial Position as at December 31, 2020 The following trial balance was obtained from the books of Marlon Deb as at December 31, 2020: DETAILS Cash Land and Building Provision for Depreciation on Building Motor Vehicle Provision for Depreciation on Motor Vehicle Machinery and Equipment Provision for Depreciation on Machinery & Equipment Capital Drawings 10% Loan Motor Vehicle Repairs Commission Received Opening Stock Insurance Bad Debts Sales Wages and Salaries Carriage Inwards Discount Received Loan Interest Creditors Returns Rent Received Purchases Debtors Provision for Bad Debts Telephone Charges Bank DR 15,000 420,000 ASSET Land and Building Motor Vehicle 310,000 RATE METHOD 10% Reducing Balance 5% Straight Line Machinery and Equipment 5% Reducing Balance 285,000 22,500 37,250 60,500 32,000 8,500 65,000 14,000 24,000 7,000 410,000 70,000 18,000 CR 64,000 45,000 57,000 425,000 300,000 65,000 630,500 17,000 52,500 8,500 45,000 4,200 Additional Notes a. Stock at year end was valued at $85,000 b. Wages is owing by $15,000 c. Insurance is prepaid by $3,000 d. During the year the owner took goods values at $12,500. This was not yet recorded 85,050 1,798,750 1,798,750 e. The rent received is prepaid by $12,000 f. Commission income is owing by $15,000 g. The provision for bad debts is to be adjusted to 5% of debtors h. Depreciation charges are to be applied as follows Prepare the following: Statement of Profit and Loss for the year ending December 31, 2020 Statement of Financial Position as at December 31, 2020

Answer rating: 100% (QA)

ANS Trading and profit loss Account for the year 31st December 2020 for Particular TO opening ... View the full answer