clemouchka
Oct 10, 2007, 12:34 AM
I am a French student studying accounting and I've got problems with doing this assignment.
The following are the ledger balances of tai fat company ltd as 31 december 1993
Ordinary Share capital 60000
Share premium 800
Profit and loss account (Dr. Balance)6444
Debtor 23067
Creditor 16399
Sales 246226
Purchases 187803
Rent and rates 2648
Lighting and heating 730
Salaries and wages 24801
Bad debts 744
Provision for bad debts (1.1.1993) 978
stock 27826
Insurance 512
Office expenses 2793
Bank balance 4346
Motor van, at cost 24000
Equipment 24000
Motor expenses 45000
Provision for depreciation (1.1.1993)
• Motor van 10800
• equipment 15000
Proceeds from sales of motor van 750
Discount received 2250
Returns inward 1000
Return outward 1500
Carriage inwards 400
Additional information are provided as follow
1. stock at 31 december 1993 $29652
2. rent paid in advance, $120
3. electricity bill oustanding, $255
4. it is considered that the provision for bad debts should be increased to $1164
5. the depreciation rate on motor van is 20 % per annum with an estimated useful life of 5 years
6. the depreciation rate on equipment is 15 % on reducing balance
7. an amount of $146 for motor insurance has been included in insurance which should treated as motor expenses
8. a motor van which was purchased on 1 january 1990 at a cost of $10000 was sold for $750 on 30 june 1993. The only accounting entries which were made to record this transaction were to debit bank and credit proceeds from sales of motor van at $750
First I don't understand where am I supposed to put the "profit and loss acount (Dr. Balance" given in the ledger balance.
In my Income statement, I found 13 791 for net profit.
Moreover, my balance sheet is not balanced so I suppose their is something wrong!
I don't know if my income statement is right.
So if someone could help me I would be really tanksfull.
Clément
The following are the ledger balances of tai fat company ltd as 31 december 1993
Ordinary Share capital 60000
Share premium 800
Profit and loss account (Dr. Balance)6444
Debtor 23067
Creditor 16399
Sales 246226
Purchases 187803
Rent and rates 2648
Lighting and heating 730
Salaries and wages 24801
Bad debts 744
Provision for bad debts (1.1.1993) 978
stock 27826
Insurance 512
Office expenses 2793
Bank balance 4346
Motor van, at cost 24000
Equipment 24000
Motor expenses 45000
Provision for depreciation (1.1.1993)
• Motor van 10800
• equipment 15000
Proceeds from sales of motor van 750
Discount received 2250
Returns inward 1000
Return outward 1500
Carriage inwards 400
Additional information are provided as follow
1. stock at 31 december 1993 $29652
2. rent paid in advance, $120
3. electricity bill oustanding, $255
4. it is considered that the provision for bad debts should be increased to $1164
5. the depreciation rate on motor van is 20 % per annum with an estimated useful life of 5 years
6. the depreciation rate on equipment is 15 % on reducing balance
7. an amount of $146 for motor insurance has been included in insurance which should treated as motor expenses
8. a motor van which was purchased on 1 january 1990 at a cost of $10000 was sold for $750 on 30 june 1993. The only accounting entries which were made to record this transaction were to debit bank and credit proceeds from sales of motor van at $750
First I don't understand where am I supposed to put the "profit and loss acount (Dr. Balance" given in the ledger balance.
In my Income statement, I found 13 791 for net profit.
Moreover, my balance sheet is not balanced so I suppose their is something wrong!
I don't know if my income statement is right.
So if someone could help me I would be really tanksfull.
Clément