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Answer All questions. Prepare the income statement for each question. Question 1 7.1 From the following trial balance of A Moore, extracted after one
Answer All questions. Prepare the income statement for each question. Question 1 7.1 From the following trial balance of A Moore, extracted after one year's trading, prepare a trad- ing and profit and loss account for the year ended 31 December 20X6. A balance sheet is not required. Sales Purchases Salaries Motor expenses Rent Insurance General expenses Premises Motor vehicles Debtors Creditors Cash at bank Cash in hand Drawings Capital Trial Balance as at 31 December 20X6 Stock at 31 December 20X6 was 12,408. Question 2 Dr Cr Sales 18,614 Purchases 11,570 Stock 1 May 20X6 3,776 Carriage outwards 326 Carriage inwards 234 Returns inwards 440 Returns outwards 355 Salaries and wages 2,447 Motor expenses 664 Rent 576 Sundry expenses 1,202 Motor vehicles 3,400 Fixtures and fittings 600 Debtors 4,577 Creditors 3,045 Cash at bank 3,876 Cash in hand 120 Drawings 2,050 Capital 13,844 35,858 35,858 Note: Dr Cr 190,576 119,832 56,527 2,416 1,894 372 85 95,420 16,594 26,740 16,524 16,519 342 8,425 138,066 345,166 345,166 Closing stock amounted to 4,000. Depreciation is to be charged at rates of 10% on cost for Fixtures and Fittings and 25% on cost for Motor Vehicles. Bad debts of 800 are to be written-off.
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