The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR...

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The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR CR 3. Bank 18,010 Capital as at 31 December year 8 Fixture and fitting at cost General expenses Insurance Interest paid inventory at 31 Dec Year 8 Lightening and heating Loan from Bank of Ruristan Payables Provision for bad debts 90,950 1,200 14,000 5,000 7,000 3,000 12,000 100,000 32,000 1,880 Accumulated depreciation on delivery van as at 31 Dec year 8 Accumulated depreciation on fixture and fitting as at 31 Dec year 9,760 8 720 Accumulated depreciation on premises as at 31 Dec усar & Purchases Trade receivables Sales revenue Shop premises at cost Delivery van at cost Wages 24,000 47,000 41,100 225,000 300,000 20,000 16,000 484,310 484,310 Adjustments 1. Closing inventory as at 31 December Year 9 amounted to £ 4,000. 2. Depreciation is to be provided on shop premises on a straight line basis at 2per cent per annum. 3. Depreciation is to be provided on fixtures and fittings on a straight line basis at 10 per cent per annum. 4. Depreciation is to be provided on the delivery van at 20 per cent per annum on a diminishing balance basis. 5. The electricity bill for the three months ending on 28 February Year 10 amounts to £2,700 and has not yet been recorded in the accounts. 6. The amount shown for insurance includes £ 1,200 for the three-month period 1 November Year 9 to 31 January Year 10. 7. A specific debt of £ 1,100 is to be written off as irrecoverable. 8. The provision for bad debts is to be adjusted to be 5 per cent of receivables. 9. On 31 December Jimmy took drawings from the business of £18,000, which have not been recorded. Required: 1. Prepare the Income Statement for the year ended 31 December Year 9 (25 Marks) 2. Prepare the Statement of Financial Position as at 31 December Year 9 (25 Marks) The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR CR 3. Bank 18,010 Capital as at 31 December year 8 Fixture and fitting at cost General expenses Insurance Interest paid inventory at 31 Dec Year 8 Lightening and heating Loan from Bank of Ruristan Payables Provision for bad debts 90,950 1,200 14,000 5,000 7,000 3,000 12,000 100,000 32,000 1,880 Accumulated depreciation on delivery van as at 31 Dec year 8 Accumulated depreciation on fixture and fitting as at 31 Dec year 9,760 8 720 Accumulated depreciation on premises as at 31 Dec усar & Purchases Trade receivables Sales revenue Shop premises at cost Delivery van at cost Wages 24,000 47,000 41,100 225,000 300,000 20,000 16,000 484,310 484,310 Adjustments 1. Closing inventory as at 31 December Year 9 amounted to £ 4,000. 2. Depreciation is to be provided on shop premises on a straight line basis at 2per cent per annum. 3. Depreciation is to be provided on fixtures and fittings on a straight line basis at 10 per cent per annum. 4. Depreciation is to be provided on the delivery van at 20 per cent per annum on a diminishing balance basis. 5. The electricity bill for the three months ending on 28 February Year 10 amounts to £2,700 and has not yet been recorded in the accounts. 6. The amount shown for insurance includes £ 1,200 for the three-month period 1 November Year 9 to 31 January Year 10. 7. A specific debt of £ 1,100 is to be written off as irrecoverable. 8. The provision for bad debts is to be adjusted to be 5 per cent of receivables. 9. On 31 December Jimmy took drawings from the business of £18,000, which have not been recorded. Required: 1. Prepare the Income Statement for the year ended 31 December Year 9 (25 Marks) 2. Prepare the Statement of Financial Position as at 31 December Year 9 (25 Marks) The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR CR 3. Bank 18,010 Capital as at 31 December year 8 Fixture and fitting at cost General expenses Insurance Interest paid inventory at 31 Dec Year 8 Lightening and heating Loan from Bank of Ruristan Payables Provision for bad debts 90,950 1,200 14,000 5,000 7,000 3,000 12,000 100,000 32,000 1,880 Accumulated depreciation on delivery van as at 31 Dec year 8 Accumulated depreciation on fixture and fitting as at 31 Dec year 9,760 8 720 Accumulated depreciation on premises as at 31 Dec усar & Purchases Trade receivables Sales revenue Shop premises at cost Delivery van at cost Wages 24,000 47,000 41,100 225,000 300,000 20,000 16,000 484,310 484,310 Adjustments 1. Closing inventory as at 31 December Year 9 amounted to £ 4,000. 2. Depreciation is to be provided on shop premises on a straight line basis at 2per cent per annum. 3. Depreciation is to be provided on fixtures and fittings on a straight line basis at 10 per cent per annum. 4. Depreciation is to be provided on the delivery van at 20 per cent per annum on a diminishing balance basis. 5. The electricity bill for the three months ending on 28 February Year 10 amounts to £2,700 and has not yet been recorded in the accounts. 6. The amount shown for insurance includes £ 1,200 for the three-month period 1 November Year 9 to 31 January Year 10. 7. A specific debt of £ 1,100 is to be written off as irrecoverable. 8. The provision for bad debts is to be adjusted to be 5 per cent of receivables. 9. On 31 December Jimmy took drawings from the business of £18,000, which have not been recorded. Required: 1. Prepare the Income Statement for the year ended 31 December Year 9 (25 Marks) 2. Prepare the Statement of Financial Position as at 31 December Year 9 (25 Marks) The Trial Balance of Kimmy's Junk business as at 31 December year 9 as follow: DR CR 3. Bank 18,010 Capital as at 31 December year 8 Fixture and fitting at cost General expenses Insurance Interest paid inventory at 31 Dec Year 8 Lightening and heating Loan from Bank of Ruristan Payables Provision for bad debts 90,950 1,200 14,000 5,000 7,000 3,000 12,000 100,000 32,000 1,880 Accumulated depreciation on delivery van as at 31 Dec year 8 Accumulated depreciation on fixture and fitting as at 31 Dec year 9,760 8 720 Accumulated depreciation on premises as at 31 Dec усar & Purchases Trade receivables Sales revenue Shop premises at cost Delivery van at cost Wages 24,000 47,000 41,100 225,000 300,000 20,000 16,000 484,310 484,310 Adjustments 1. Closing inventory as at 31 December Year 9 amounted to £ 4,000. 2. Depreciation is to be provided on shop premises on a straight line basis at 2per cent per annum. 3. Depreciation is to be provided on fixtures and fittings on a straight line basis at 10 per cent per annum. 4. Depreciation is to be provided on the delivery van at 20 per cent per annum on a diminishing balance basis. 5. The electricity bill for the three months ending on 28 February Year 10 amounts to £2,700 and has not yet been recorded in the accounts. 6. The amount shown for insurance includes £ 1,200 for the three-month period 1 November Year 9 to 31 January Year 10. 7. A specific debt of £ 1,100 is to be written off as irrecoverable. 8. The provision for bad debts is to be adjusted to be 5 per cent of receivables. 9. On 31 December Jimmy took drawings from the business of £18,000, which have not been recorded. Required: 1. Prepare the Income Statement for the year ended 31 December Year 9 (25 Marks) 2. Prepare the Statement of Financial Position as at 31 December Year 9 (25 Marks)

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Solution Solution 1 INCOME STATEMENT OF JIMMYS JUNK FOR THE YEAR ENDED 31 DECEMBER YEAR 9 Particulars Amount in Amount in Amount in Sales revenue 2250... View the full answer