The trial Balance of BW Kneads, a sole trader, as at 31 December 2022 was as...

  

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The trial Balance of BW Kneads, a sole trader, as at 31 December 2022 was as follows: Debit Capital Land and Buildings Office equipment at cost Motor vehicles at cost Drawings Sales and purchases returns Carriage in Carriage out Inventory as at 1.1.2022 Bank Sales and purchases Motor expenses Provision for doubtful debt Provision for depreciation: Land and Buildings Office equipment Motor vehicles Sundry expenses Wages and Salaries Debtors and creditors Telephone and insurance Bank loan 60 000.00 13.000.00 18000.00 10 100.00 1250.00 750.00 1125.00 9 000.00 1 200.00 101 000.00 2400.00 2760.00 12 500.00 10 200.00 2200.00 245 485.00 Credit 69 585.00 1 000.00 142 360.00 240.00 2400.00 1 300.00 3 600.00 15 000.00 245 485.00 You are given the following additional information: (1) (1) (iii) (iv) Closing Inventory, as at 31 December 2022; P10 200.00 Depreciation is to be charged as follows: • Land and Building P600 • Office equipment P1300 Motor vehicles Wages owing P1 200.00 Insurance paid in advance P200.00 Provision for doubtful debts is to maintained at 5% of debtors. P2880 AMENT Required: (a) Prepare the Statement of Comprehensive Income for BW Kneads for the year ended 31 December 2022. (15 marks) (b) Prepare the Statement of Financial Position for BW Kneads for the year ended 31 December 2022. (10 marks) The trial Balance of BW Kneads, a sole trader, as at 31 December 2022 was as follows: Debit Capital Land and Buildings Office equipment at cost Motor vehicles at cost Drawings Sales and purchases returns Carriage in Carriage out Inventory as at 1.1.2022 Bank Sales and purchases Motor expenses Provision for doubtful debt Provision for depreciation: Land and Buildings Office equipment Motor vehicles Sundry expenses Wages and Salaries Debtors and creditors Telephone and insurance Bank loan 60 000.00 13.000.00 18000.00 10 100.00 1250.00 750.00 1125.00 9 000.00 1 200.00 101 000.00 2400.00 2760.00 12 500.00 10 200.00 2200.00 245 485.00 Credit 69 585.00 1 000.00 142 360.00 240.00 2400.00 1 300.00 3 600.00 15 000.00 245 485.00 You are given the following additional information: (1) (1) (iii) (iv) Closing Inventory, as at 31 December 2022; P10 200.00 Depreciation is to be charged as follows: • Land and Building P600 • Office equipment P1300 Motor vehicles Wages owing P1 200.00 Insurance paid in advance P200.00 Provision for doubtful debts is to maintained at 5% of debtors. P2880 AMENT Required: (a) Prepare the Statement of Comprehensive Income for BW Kneads for the year ended 31 December 2022. (15 marks) (b) Prepare the Statement of Financial Position for BW Kneads for the year ended 31 December 2022. (10 marks)

Answer rating: 100% (QA)

To prepare the Statement of Comprehensive Income and the Statement of Financial Position for BW Kneads for the year ended 31 December 2022 we need to ... View the full answer