EXERCISESNo. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is asunder:CashAllowance for bad debtsInterest (Cr.)6006,00020,00035,000 Capital.12,4005,000 Purchases12,000 Transporting1,200 SalaryStockEquipmentsSundry debtorsFixture & fitting5,00079,6003,00038,000500Bills receivableAdvertisementRentDelivery expensesSalesPurchase discount80,0001,60015,70014,0004,000Miscellaneous expensesAdjusting Data :Prepaid rent Rs, 2,000.1.2.Prepaid advertisement Rs. 400.3.Reserve for bad debts Rs. 1,000.4.Salary Outstanding for the year Rs. 7,000.Interest unearned Rs. 400.Closing stock was valued at Rs. 16,450.5.6.Required :1.Trading profit and loss account for the year ended December 31,1980.Balance Sheet as on that date.2.

Financial statement including trading and profit and loss account has been prepared.

No. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is as under: Cash Allowance for bad debts Interest (Cr.) 600 6,000 20,000 35,000 Capital 12,400 5,000 12,000 1,200 80,000 1,600 Equipments Sundry debtors Fixture & fitting Advertisement 5,000 79,600 3,000 38,000 Bills reteivable Purchases Rent Transporting Salary Stock Miscellaneous expenses 500 Delivery expenses Sales Purchase discount 15,700 14,000 4,000 Adjusting Data: Prepaid rent Rs, 2,000. Prepaid advertisement Rs. 400. Reserve for bad debts Rs. 1,000. 1. 2. 3. 4. Salary Outstanding for the year Rs. 7,000. Interest unearned Rs. 400. Closing stock was valued at Rs. 16,450. Required : 1. Trading profit and loss account for the year ended December 31, 1980. 2. Balance Sheet as on that date. 56

No. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is as under: Cash Allowance for bad debts Interest (Cr.) 600 6,000 20,000 35,000 Capital 12,400 5,000 12,000 1,200 80,000 1,600 Equipments Sundry debtors Fixture & fitting Advertisement 5,000 79,600 3,000 38,000 Bills reteivable Purchases Rent Transporting Salary Stock Miscellaneous expenses 500 Delivery expenses Sales Purchase discount 15,700 14,000 4,000 Adjusting Data: Prepaid rent Rs, 2,000. Prepaid advertisement Rs. 400. Reserve for bad debts Rs. 1,000. 1. 2. 3. 4. Salary Outstanding for the year Rs. 7,000. Interest unearned Rs. 400. Closing stock was valued at Rs. 16,450. Required : 1. Trading profit and loss account for the year ended December 31, 1980. 2. Balance Sheet as on that date. 56

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 4MC: Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to...

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