balance sheet and income statement
DR 16780 15526 16800 CR 5904 7560 7028 24794 372 29768 1520 10136 948 69976 Trade Receivables and Payables Bank Balance Equipment (Cost) Equipment (Depreciation) Stock at 1 Oct 2005 Salaries Bad Debt Purchases & Sales General Expenses Rent & Rates Vehicle expenses Bank Loan (10% per annum) Carriage inwards Motor vehicles (cost) Motor Vehicles (Dep) Loan Interest Carriage outwards Sales and Purchases returns Heat & Light Drawings Cash Fixture & Fittings Capital at 1 Oct 2005 12700 624 38500 13860 774 1270 1396 482 2460 7180 816 6750 72376 183150 183150 i. On 30 September 2005 the following adjustments had not been made Stock of goods was valued at 6,928 Depreciation is to be charged at a. 15% for equipment (straight-line method) b. 20% for Motor Vehicles (reducing balance method) A quarter of the heat and light is to be charged to the trading account and three-quarters to the profit and loss account There was an outstanding bill of 72 for repairs to the photocopier and stock stationary valued at 290; to be charged to the general expenses Vehicle expenses include the cost of annual vehicle licensing of 504, which was paid on 1 August 2006 iv. v. You are required to:- a) Carry out the necessary year-end adjustments b) Prepare Income Statement for the year-end 30 September 2006 and a Balance Sheet. On 30 September 2006 the following trial balance was extracted from the books of Tobins: DR 16780 15526 16800 CR 5904 7560 7028 24794 372 29768 1520 10136 948 69976 Trade Receivables and Payables Bank Balance Equipment (Cost) Equipment (Depreciation) Stock at 1 Oct 2005 Salaries Bad Debt Purchases & Sales General Expenses Rent & Rates Vehicle expenses Bank Loan (10% per annum) Carriage inwards Motor vehicles (cost) Motor Vehicles (Dep) Loan Interest Carriage outwards Sales and Purchases returns Heat & light Drawings Cash Fixture & Fittings Capital at 1 Oct 2005 12700 624 38500 13860 774 1270 1396 482 2460 7180 816 6750 72376 183150 183150 i. On 30 September 2006 the following adjustments had not been made: Stock of goods was valued at 6,928 ii. Depreciation is to be charged at a. 15% for equipment (straight-line method) b. 20% for Motor Vehicles (reducing balance method) A quarter of the heat and light is to be charged to the trading account and three-quarters to the profit and loss account There was an outstanding bill of 72 for repairs to the photocopier and stock stationary valued at 290; to be charged to the general expenses Vehicle expenses include the cost of annual vehicle licensing of 504, which was paid on 1 August 2006 iv. v. You are required to:- a) Carry out the necessary year-end adjustments b) Prepare Income Statement for the year-end 30 September 2006 and a Balance Sheet
