Rajin Singh Trial Balance as at 31 May 2020 Dr. Cr. Sales - 429,192 Purchases 215,352 - Equipment 324,000 - Motor Vehicle 162,000 - Depreciation expense 31,185 - Provision for depreciation - Equipment - 122,850 Provision for depreciation - Motor Vehicle - 54,000 Opening stock 42,255 - Returns in 1,755 - Returns out - 648 Accounts payables - 68,661 Accounts receivables 77,220 - Bad debts expense 2,835 - Bank 55,188 - Cash 20,250 - Carriage in 3,915 - Carriage out 3,645 - Discounts allowed 4,941 - Discounts received - 3,240 Capital - 318,087 Drawings 33,750 - Rent 64,800 - Insurance 9,018 - Interest expense 11,151 - Loan - 81,000 Provision for bad debts - 2,322 Telephone 8,910 - Water rates 7,830 - 1,080,000 1,080,000 Stock at 31 May 2020 was $41,100 You are required to prepare the financial statements (Income Statement and Balance Sheet) for the year ended 31 May 2020
Rajin Singh Trial Balance as at 31 May 2020 Dr. Cr. Sales - 429,192 Purchases 215,352 - Equipment 324,000 - Motor Vehicle 162,000 - Depreciation expense 31,185 - Provision for depreciation - Equipment - 122,850 Provision for depreciation - Motor Vehicle - 54,000 Opening stock 42,255 - Returns in 1,755 - Returns out - 648 Accounts payables - 68,661 Accounts receivables 77,220 - Bad debts expense 2,835 - Bank 55,188 - Cash 20,250 - Carriage in 3,915 - Carriage out 3,645 - Discounts allowed 4,941 - Discounts received - 3,240 Capital - 318,087 Drawings 33,750 - Rent 64,800 - Insurance 9,018 - Interest expense 11,151 - Loan - 81,000 Provision for bad debts - 2,322 Telephone 8,910 - Water rates 7,830 - 1,080,000 1,080,000 Stock at 31 May 2020 was $41,100 You are required to prepare the financial statements (Income Statement and Balance Sheet) for the year ended 31 May 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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2P
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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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Rajin Singh
Trial Balance as at 31 May 2020
Dr. Cr.
Sales - 429,192
Purchases 215,352 -
Equipment 324,000 -
Motor Vehicle 162,000 -
Depreciation expense 31,185 -
Provision for depreciation - Equipment - 122,850
Provision for depreciation - Motor Vehicle - 54,000
Opening stock 42,255 -
Returns in 1,755 -
Returns out - 648
Accounts payables - 68,661
Accounts receivables 77,220 -
Bad debts expense 2,835 -
Bank 55,188 -
Cash 20,250 -
Carriage in 3,915 -
Carriage out 3,645 -
Discounts allowed 4,941 -
Discounts received - 3,240
Capital - 318,087
Drawings 33,750 -
Rent 64,800 -
Insurance 9,018 -
Interest expense 11,151 -
Loan - 81,000
Provision for bad debts - 2,322
Telephone 8,910 -
Water rates 7,830 -
1,080,000 1,080,000
Stock at 31 May 2020 was $41,100
You are required to prepare the financial statements (Income Statement and Balance
Sheet) for the year ended 31 May 2020
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