Prepare an Income Statement and a Statement of Financial Position for the year ended 30 September 2019.
 

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The following Trial Balance has been extracted from the books of Belle Limited for the year ended 30 September 2019: Opening Inventory Purchases Return outwards Carriage inwards Sales Return inwards Staff salary Insurance Telephone expenses Distribution Costs Postage and Stationery Ordinary Share Capital Trade Payables Bank overdraft Land Buildings Fixtures and fittings Trade Receivables Cash in hand DR $ 391,800 1,941,000 91,950 150,360 363,500 16,900 24,900 31,500 20,100 420,000 150,000 55,800 259,500 6,450 3,923,760 CR $ 73,200 2,851,920 806,000 126,040 66,600 3,923,760 Additional information: (i) Closing Inventory as at 30 September 2019 was $435,000. (ii) The prepaid insurance as at 31 September 2019 amounts to $900. (iii) There is an outstanding amount of $2,100 for the telephone expenses. (iv) Depreciation of 15% to be provided on buildings at cost. (v) The fixtures and fittings are depreciated at 10% using straight line method. (vi) The company provides a 5% allowance on trade receivables. The following Trial Balance has been extracted from the books of Belle Limited for the year ended 30 September 2019: Opening Inventory Purchases Return outwards Carriage inwards Sales Return inwards Staff salary Insurance Telephone expenses Distribution Costs Postage and Stationery Ordinary Share Capital Trade Payables Bank overdraft Land Buildings Fixtures and fittings Trade Receivables Cash in hand DR $ 391,800 1,941,000 91,950 150,360 363,500 16,900 24,900 31,500 20,100 420,000 150,000 55,800 259,500 6,450 3,923,760 CR $ 73,200 2,851,920 806,000 126,040 66,600 3,923,760 Additional information: (i) Closing Inventory as at 30 September 2019 was $435,000. (ii) The prepaid insurance as at 31 September 2019 amounts to $900. (iii) There is an outstanding amount of $2,100 for the telephone expenses. (iv) Depreciation of 15% to be provided on buildings at cost. (v) The fixtures and fittings are depreciated at 10% using straight line method. (vi) The company provides a 5% allowance on trade receivables.

Answer rating: 100% (QA)

Income Statement Amt Amt Opening Inventory 391800 Sales 2851920 Purchases 1941000 Le... View the full answer