Additional informationInventory as at 31/12/2019 amounted to Ksh. 2,960,000Provision for bad and doubtful debts is set at 6 % of current accounts receivable.Motor vehicle expenses prepaid amounted to Ksh. 135,000Rent accrued amounted to Ksh. 140,000 and while salaries and wages unpaid were Ksh. 85,000. 5.Depreciation is provided on Plant and Machinery; and Furniture at 10 % p.a and 12% p.a respectively on cost. Required to prepare(a)Income statement for year ended 31/12/2019 (b)Statement of financial position as at 31/12/2019 Mr Thomas is a retailer operating in Nairobi His trial balance as at 31/12/19 is as follows:DrCrKah. *000Kah. "000Plant and Machinery(at cost)59,000Furniture (at cost)20,400Purchases73,000Sales108,900Inventory 1/1/193,200Discount2,1501,850Carriage inwards520Carriage outwards2,400Provision for bad and doubtful debts1140Accounts receivable27,300Accounts payable18,600Cash at Rank2,600Rent1,240Electricity and Water1,980TelephoneMotor vehicles expenses1,5402,350Bank Loan4,900Bad debts3,760Retums4,5003,470Salaries and WagasDrawing s1,8003,150Capital72,030210.890210.890

The end product of the book keeping is the financial statements of the company. The financial…

Additional information Inventory as at 31/12/2019 amounted to Ksh. 2,960,000 Provision for bad and doubtful debts is set at 6 % of current accounts receivable. Motor vehicle expenses prepaid amounted to Ksh. 135,000 Rent accrued amounted to Ksh. 140,000 and while salaries and wages unpaid were Ksh. 85,000. 5.Depreciation is provided on Plant and Machinery; and Furniture at 10 % p.a and 12% p.a respectively on cost. Required to prepare (a)Income statement for year ended 31/12/2019 (b)Statement of financial position as at 31/12/2019

Additional information Inventory as at 31/12/2019 amounted to Ksh. 2,960,000 Provision for bad and doubtful debts is set at 6 % of current accounts receivable. Motor vehicle expenses prepaid amounted to Ksh. 135,000 Rent accrued amounted to Ksh. 140,000 and while salaries and wages unpaid were Ksh. 85,000. 5.Depreciation is provided on Plant and Machinery; and Furniture at 10 % p.a and 12% p.a respectively on cost. Required to prepare (a)Income statement for year ended 31/12/2019 (b)Statement of financial position as at 31/12/2019

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 17Q: A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300....

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. Bryan is a retailer whose Trial Balance at 2020 December 31 is given below:DR CR$ $Purchases and Sales 72 000 119 400Returns 750Carriage Inwards 930Wages and Salaries 27 670General Expenses 4 750Cash at Bank 4 210Cash in Hand 150Premises 62 520Fixtures and Fittings 9 000Inventory at 2020 January 01 5 550Accounts Receivable and Payable 7 200 4 850Motor Vehicle at cost 13 150Provision for Depreciation onMotor Vehicle at 2020 January 01 2 630Capital at 2020 January 01 82 500Drawings 3 000---------- ----------210 130 210 130====== ======The following additional information is available:1. Inventory at 2020 December 31 was valued at $5 200.2. General Expenses of $400 paid for the year 2021.3. A debt of $200 is to be written off as bad.4. Provision is to be made for doubtful debts of 5% on Accounts Receivables (after writing offthe Bad Debt of $200) at 2020 December 31.5. Depreciation is to be provided for 2020 as follows:Fixtures and Fittings at 10% using the straight -line method; Motor…
Eng Tat is a manufacturer. His trial balance as at 31 December 2020 is as follows: Particulars DebitRM CreditRMDelivery van expenses 1,760Lighting and heating:FactoryOffice 7,2201,490Manufacturing wages 72,100General expenses:FactoryOffice 8,1001,940Sales representatives : Commission 11,688Purchase of raw materials 57,210Rent:FactoryOffice 6,1002,700Machinery (Cost : RM40,000) 28,600Office equipment ( RM9,000) 8,200Office salaries 17,740Accounts receivables 34,200Account payables 9,400Bank 16,142Sales 194,800Van (cost RM6,800) 6,200Inventory at 31 December 2020:Raw materialsFinished goods 13,26041,300Drawings 24,200Capital 155,950TOTAL 360,150 360,150 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Inventory at 31 December 2020:a. Raw materials RM14,510b. Finished goods RM44,490ii. Depreciate machinery RM3,000; office equipment RM6,000; van RM1,200iii. Manufacturing wages due but unpaid at 31 December 2020 RM550; office rentprepaid RM140 Required: c) Prepare…
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Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
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