Prepare Shane's trading and profit and loss account for the year to 31 March 2019 and the balance sheet as at that date. Rs. Rs. Bank |Саpital Cash Drawings Insurance Office expenses Office furniture at cost | Office furniture: accumulated depreciation at 1 April 2018 Provision for doubtful debts at 1 April 2018 Purchases Salaries Sales 1200 33000 300 6000 2000 15000 5000 2000 500 | 55000 | 25000 100000 Stock at 1 April 2018 Trade creditors Trade debtors 10000 4000 | 20000 139500 139500 Additional Information: a. Stock at 31 March 2019 was valued at Rs. 15000. b. The insurance included Rs. 500 worth of cover which related to the year to 31 March 2020. c. Depreciation is charged on office furniture at 10 per cent per annum of its original cost. d. A bad debt of Rs. 1000 included in the trade debtors’ balance of Rs. 20000 is to be written off. e. The provision for doubtful debts is to be maintained at a level of 5 per cent of outstanding trade debtors as at 31 March 2019. f. At 31 March 2019, there was an amount owing for salaries of Rs. 1000.

Prepare Shane's trading and profit and loss account for the year to 31 March 2019 and the balance sheet as at that date. Rs. Rs. Bank |Саpital Cash Drawings Insurance Office expenses Office furniture at cost | Office furniture: accumulated depreciation at 1 April 2018 Provision for doubtful debts at 1 April 2018 Purchases Salaries Sales 1200 33000 300 6000 2000 15000 5000 2000 500 | 55000 | 25000 100000 Stock at 1 April 2018 Trade creditors Trade debtors 10000 4000 | 20000 139500 139500 Additional Information: a. Stock at 31 March 2019 was valued at Rs. 15000. b. The insurance included Rs. 500 worth of cover which related to the year to 31 March 2020. c. Depreciation is charged on office furniture at 10 per cent per annum of its original cost. d. A bad debt of Rs. 1000 included in the trade debtors’ balance of Rs. 20000 is to be written off. e. The provision for doubtful debts is to be maintained at a level of 5 per cent of outstanding trade debtors as at 31 March 2019. f. At 31 March 2019, there was an amount owing for salaries of Rs. 1000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10PA: Elegant Universal uses the balance sheet aging method to account for uncollectible debt on...

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