The following balances were extracted from the books of accounts of Thomas as at 31 May 2021: RM RM Capital Account – Thomas 72,700 Furniture and fittings 10,000 Accumulated depreciation - furniture and fittings 2,300 Purchases 200,800 Sales 310,000 Inventory at 1 June 2020 19,000 Trade Receivables 16,600 Trade Payables 21,000 Machinery 40,000 Accumulated depreciation – machinery 5,000 Carriage inwards 345 General expenses 44,567 Rent 5,200 Allowance for doubtful debts 350 Bad debts 1,030 Discount received 550 Salaries 13,333 Insurance 450 Drawings – Thomas 7,575 Bank 60,000 Loan from bank 10,000 Interest on loan 3,000 421,900 421,900 Additional information: RM 1. Inventory as at 31 May 2021 15,200 2. Salaries outstanding at 31 May 2021 1,500 3. The allowance for doubtful debts is to be maintained at 300 4. The machinery is to be depreciated using the reducing balance method at the rate of 25% 5. Depreciation is to be provided on the cost of furniture at 10% 6. Rent prepaid for the following year amounted to 720 Required: (a) Prepare the Income Statement for the year ended 31 May 2021. (b) Prepare the Statement of Financial Position as at 31 May 2021. Please answer required a ,b and working note
The following balances were extracted from the books of accounts of Thomas as at 31 May 2021: RM RM Capital Account – Thomas 72,700 Furniture and fittings 10,000 Accumulated
(a) Prepare the Income Statement for the year ended 31 May 2021.
(b) Prepare the
Step by step
Solved in 2 steps with 1 images
