From the following particulars prepare trading and profit and loss account för the year ending on 31st December, 1988 and a balance sheet as on that date. Capital Interest on investment Bills payable. 20,000 100 Drawing Purchases Investment 1,200 8,000 2,000 3,400 7,000 450 550 23,000 5,050 Sales Wages Sundry Debtors Loose Tools Cash in hand Cash at bank Building Plant & Machinery Bills receivable Salaries Office expenses Discount Rent Bad Debts Sundry Creditors Returns outwards 400 120 Loan 3,000 850 12,700 10,000 100 1,400 300 450 310 170 262 ACCOUNTING PRINCIPLES Freight & Carriage Insurance 500 200 Patent rights (10 years) unexpired Returns inwards 2,000 420 530 Furniture 52,100 52,100 Stock on 31st December, 1988 was Rs. 3500. There were outstanding liabilities in respect of wages Rs. 240; salaries Rs. 190; insurance was paid in advance to the extent of Rs. 60; Depreciate plant and machinery by 10%; furniture 5%, patents by 10% and loose tools by 25%. Make a provision for 4 months interest on loan at 8 percent P.A.
From the following particulars prepare trading and profit and loss account för the year ending on 31st December, 1988 and a balance sheet as on that date. Capital Interest on investment Bills payable. 20,000 100 Drawing Purchases Investment 1,200 8,000 2,000 3,400 7,000 450 550 23,000 5,050 Sales Wages Sundry Debtors Loose Tools Cash in hand Cash at bank Building Plant & Machinery Bills receivable Salaries Office expenses Discount Rent Bad Debts Sundry Creditors Returns outwards 400 120 Loan 3,000 850 12,700 10,000 100 1,400 300 450 310 170 262 ACCOUNTING PRINCIPLES Freight & Carriage Insurance 500 200 Patent rights (10 years) unexpired Returns inwards 2,000 420 530 Furniture 52,100 52,100 Stock on 31st December, 1988 was Rs. 3500. There were outstanding liabilities in respect of wages Rs. 240; salaries Rs. 190; insurance was paid in advance to the extent of Rs. 60; Depreciate plant and machinery by 10%; furniture 5%, patents by 10% and loose tools by 25%. Make a provision for 4 months interest on loan at 8 percent P.A.
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
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 5RE
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