malami
Jun 17, 2009, 01:37 PM
I have the problem with this exmple... can not balanse it... help :(...
thanks
Wayan has been in business for many years. His accountant has extracted the following trail balance from his book of accout as at 31 March 1995.
------------------------------------------------------------------------------$--------------$
Bank -----------------------------------------------------------------------1200
Capital -----------------------------------------------------------------------------------33000
Cash---------------------------------------------------------------------------300
Drawings--------------------------------------------------------------------6000
Insurance --------------------------------------------------------------------2000
Office Expanses-----------------------------------------------------------15000
Office furniture at cost-----------------------------------------------------5000
Office Furniture : accouted depreciation at 1 April 1994--------------------------------2000
Provision for bad and doubtful debts at 1 April 1994------------------------------------500
Purchases-------------------------------------------------------------------55000
Salaries ---------------------------------------------------------------------25000
Sales-----------------------------------------------------------------------------------------100000
Stock at 1April 1994------------------------------------------------------10000
Trade Credits -------------------------------------------------------------------------------4000
Trade debtors---------------------------------------------------------------20000
----------------------------------------------------------------------------$139500--------$139500
The following information si to be taken in to account:
1) Stock at 1 March 19X5 was valued at $15000.
2.) The insurance included $500 worth of cover which related to the year to 31 March 19X6.
3.) Depreciation is charged on the office furniture at 10% per annum of the original cost (its assumed not to have any residual value).
4) The bad debt of $1000 is included in the trade debtors account balance of $20000 is to be written off.
5) The provision for bad and doubtful debt is to be maintained at the level of 5% of outstanding of outstanding trade debtors as at 31 March 19X5. i.e. after excluding bad debt referred to the note above (4).
6. At 31 March there was an amount of owning salaries $1000.
REQUIRED: 1. TRADE AND PROFIT AND LOSS ACOUNT FOR THE YEAR TO 31.MARCH 19X5
2) BALANCE SHEET AS AT THE DATE AND INCOME STATEMENT.
thanks
Wayan has been in business for many years. His accountant has extracted the following trail balance from his book of accout as at 31 March 1995.
------------------------------------------------------------------------------$--------------$
Bank -----------------------------------------------------------------------1200
Capital -----------------------------------------------------------------------------------33000
Cash---------------------------------------------------------------------------300
Drawings--------------------------------------------------------------------6000
Insurance --------------------------------------------------------------------2000
Office Expanses-----------------------------------------------------------15000
Office furniture at cost-----------------------------------------------------5000
Office Furniture : accouted depreciation at 1 April 1994--------------------------------2000
Provision for bad and doubtful debts at 1 April 1994------------------------------------500
Purchases-------------------------------------------------------------------55000
Salaries ---------------------------------------------------------------------25000
Sales-----------------------------------------------------------------------------------------100000
Stock at 1April 1994------------------------------------------------------10000
Trade Credits -------------------------------------------------------------------------------4000
Trade debtors---------------------------------------------------------------20000
----------------------------------------------------------------------------$139500--------$139500
The following information si to be taken in to account:
1) Stock at 1 March 19X5 was valued at $15000.
2.) The insurance included $500 worth of cover which related to the year to 31 March 19X6.
3.) Depreciation is charged on the office furniture at 10% per annum of the original cost (its assumed not to have any residual value).
4) The bad debt of $1000 is included in the trade debtors account balance of $20000 is to be written off.
5) The provision for bad and doubtful debt is to be maintained at the level of 5% of outstanding of outstanding trade debtors as at 31 March 19X5. i.e. after excluding bad debt referred to the note above (4).
6. At 31 March there was an amount of owning salaries $1000.
REQUIRED: 1. TRADE AND PROFIT AND LOSS ACOUNT FOR THE YEAR TO 31.MARCH 19X5
2) BALANCE SHEET AS AT THE DATE AND INCOME STATEMENT.