Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ACC 1101 -CAT 1-TIME: 1 HOUR QUESTION 1 - 20 MARKS The following trial balance was extracted from the books of Rose Martins, a sole

image text in transcribed

ACC 1101 -CAT 1-TIME: 1 HOUR QUESTION 1 - 20 MARKS The following trial balance was extracted from the books of Rose Martins, a sole trader on 31 December 2019. Baddebts Sh. Sh. Capital 2,880,000 Freehold land and buildings at cost 1,120,000 Motor vehicles at cost 1,094,000 Furniture and fittings at cost 240,000 Stock at 1 January 2019 960,000 Purchases and sales 9,408,000 11.088.000 Debtors and creditors 936,000 695,200 Discounts allowed and received 195,200 119,200 Returns inwards and outwards 16,000 28,800 Rent received 44,000 Loan (interest payable 5% per annum) 192,000 Interest ton loan 4.800 Proceeds of sale of motor vehicle 150,000 Provision for doubtfuldebts 27,200 52,000 Wages and salaries 1,127,200 Drawings 256,000 General expenses 138,400 Bank balance 108,800 Rates and insurance 48,000 Provisions for depreciation: Furniture and fittings Motor vehicle 320,000 15,704,400 15.704.400 Additional Notes: a) Stock at 31 December 2019 was valued at Sh. 1,360,000. b) As at 31 December 2019, wages and salaries outstanding amounted to Sh. 66,400. Prepaid rates and insurance as at 31 December 2019 stood at Sh. 12,000 d) Interest paid is only a half of the amount due for the year ended 31 December 2019. e) Provision for doubtful debts is to be adjusted to 5% of the debtors. f) Depreciation is to be provided for as follows: Furniture and fittings at 5% on reducing balance method Motor vehides at 20% on straight line method a) Required: Statement of profit or loss for the year ended 31 December 2019. (8 Marks) Statement of financial position as at 31 December 2019. (7 Marks) 160,000 i) 11) (2 Marks) (3 Marks) c) Explain two skills needed in accounting d) State the category expense to post the below items on the petty cash book i. Serviettes ii. Mosquito Doom iii. Toothpick

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Guide To Audit Data Analytics

Authors: AICPA

1st Edition

1945498641, 978-1945498640

More Books

Students also viewed these Accounting questions

Question

7. How does each of these characters achieve epiphany?

Answered: 1 week ago

Question

4. How is culture a contested site?

Answered: 1 week ago