8 The following Trial Balance was extracted from the books of Tom Nik Trading, a wholesaler as at 31 July 2020: Capital Drawings Trade Receivables and Trade Payables Sales Revenue Cost of sales (ii) Wages Utilities Rent (a) (b) Freehold property (cost) Fixtures and fittings (cost) Vehicles (cost) Accumulated depreciation : Fixtures and fittings Vehicles Insurance Allowance for impairment of trade receivables Vehicle expenses Inventory (iii) Cash at bank Cash in hand Loan (Interest @ 10% p.a.) Interest on loan Dr ($) REQUIRED: 14 000 6 400 27 420 12 000 3 000 24 000 48 000 7 200 30 400 2120 320 200 1 600 18 340 750 196 750 Cr ($) 75 000 5 800 96 150 The following additional information is available: (i) An invoice of $100 for goods purchased from creditor has been omitted from the books. 2 300 2 000 500 15 000 196 750 Tom Nik took $450 worth of goods for his own use, and this has not been recorded in any of the books. Owner contributes personal shelving display unit worth $2 800 for business use. Prepare the statement of financial performance for the year ended 31 July 2020. Prepare the statement of financial position as at 31 July 2020.
8 The following Trial Balance was extracted from the books of Tom Nik Trading, a wholesaler as at 31 July 2020: Capital Drawings Trade Receivables and Trade Payables Sales Revenue Cost of sales (ii) Wages Utilities Rent (a) (b) Freehold property (cost) Fixtures and fittings (cost) Vehicles (cost) Accumulated depreciation : Fixtures and fittings Vehicles Insurance Allowance for impairment of trade receivables Vehicle expenses Inventory (iii) Cash at bank Cash in hand Loan (Interest @ 10% p.a.) Interest on loan Dr ($) REQUIRED: 14 000 6 400 27 420 12 000 3 000 24 000 48 000 7 200 30 400 2120 320 200 1 600 18 340 750 196 750 Cr ($) 75 000 5 800 96 150 The following additional information is available: (i) An invoice of $100 for goods purchased from creditor has been omitted from the books. 2 300 2 000 500 15 000 196 750 Tom Nik took $450 worth of goods for his own use, and this has not been recorded in any of the books. Owner contributes personal shelving display unit worth $2 800 for business use. Prepare the statement of financial performance for the year ended 31 July 2020. Prepare the statement of financial position as at 31 July 2020.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 17P: On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:8
The following Trial Balance was extracted from the books of Tom Nik Trading, a
wholesaler as at 31 July 2020:
Capital
Drawings
Trade Receivables and Trade Payables
Sales Revenue
Cost of sales
(a)
Wages
Utilities
Rent
Freehold property (cost)
Fixtures and fittings (cost)
Vehicles (cost)
Accumulated depreciation :
Fixtures and fittings
Vehicles
Cash at bank
Cash in hand
Insurance
Allowance for impairment of trade receivables
Vehicle expenses
Inventory
Loan (Interest @ 10% p.a.)
Interest on loan
Dr ($)
14 000
6 400
REQUIRED:
27 420
12 000
3 000
24 000
48 000
7 200
30 400
2 120
320
1 200
1 600
18 340
750
196 750
Cr ($)
75 000
5 800
96 150
2 300
2 000
The following additional information is available:
(i)
An invoice of $100 for goods purchased from creditor has been omitted
from the books.
500
15 000
196 750
Tom Nik took $450 worth of goods for his own use, and this has not been
recorded in any of the books.
Owner contributes personal shelving display unit worth $2 800 for
business use.
(b) Prepare the statement of financial position as at 31 July 2020.
Prepare the statement of financial performance for the year ended 31 July
2020.
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