Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

in this question we need to see q 28.2 which i add in next pic 28.11 This question also relates to extended trial balances (see

image text in transcribed

in this question we need to see q 28.2 which i add in next pic

image text in transcribed

28.11 This question also relates to extended trial balances (see Exhibit 28.2) From the following trial balance of John Brown, store owner, prepare a trading account and profit and loss account for the year ended 31 December 20X7, and a balance sheet as at that date, taking into consideration the adjustments shown below: Trial Balance as at 31 December 20X7 Dr Cr f 400,000 350,000 5,000 6,200 100,000 800 Sales Purchases Sales returns Purchases returns Opening stock at 1 January 20x7 Provision for doubtful debts Wages and salaries Rates Telephone Shop fittings at cost Van at cost Debtors and creditors Bad debts Capital Bank balance Drawings 30,000 6,000 1,000 40,000 30,000 9,800 200 7,000 179,000 3,000 18,000 593,000 593,000 (1) Closing stock at 31 December 20X7 120,000. (ii) Accrued wages 5,000. (iii) Rates prepaid 500. (iv) The provision for doubtful debts to be increased to 10 per cent of debtors. (1) Telephone account outstanding 220. (vi) Depreciate shop fittings at 10 per cent per annum, and van at 20 per cent per annum, on cost. 28.2A W Hope's year ended on 30 June 20x8. Write up the ledger accounts, showing the transfers to the financial statements and the balances carried down to the next year for the following: 328 Chapter 28 - Accruals and prepayments and other adjustments for financial statements (a) Stationery: Paid for the year to 30 June 20x8 240; Stocks of stationery at 30 June 20x7 60; at 30 June 20X8 95. (b) General expenses: Paid for the year to 30 June 20x8 470; Owing at 30 June 20x7 32; Owing at 30 June 20X8 60. (c) Rent and business rates (combined account): Paid in the year to 30 June 20x8 5,410; Rent owing at 30 June 20x7 220; Rent paid in advance at 30 June 20x8 370; Business rates owing 30 June 20x7 191; Business rates owing 30 June 20X8 393. (d) Motor expenses: Paid in the year to 30 June 20x8 1,410; Owing as at 30 June 20x7 92; Owing as at 30 June 20x8 67. (e) Hope earns commission from the sales of one item. Received for the year to 30 June 2008 1,100; Owing at 30 June 20x7 50; Owing at 30 June 20X8 82

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_2

Step: 3

blur-text-image_3

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

Artificial Intelligence In Accounting Organisational And Ethical Implications

Authors: Othmar M. Lehner, Carina Knoll

1st Edition

1032055626, 9781032055626

More Books

Students also viewed these Accounting questions