Oloratos trial balance as at 31st December 2020

Dr Cr

Pula Pula

Sales 800,000 Sales

Returns 17,000

Purchases 400,000

Purchases Returns 21,000

Land and Buildings 320,000

Machinery 275,000

Motor vehicle 130,000

Furniture 65,000

Opening inventory 50,000

Accounts receivable 220,000

Accounts payable 276,000

Capital 650,000

Cash at Bank 30,000

Cash in hand 3,000

Telephone 12,000

Electricity 15,000

Salaries and wages 170,000

Discounts receivable 3,500

Discounts Allowed 2,000

Interest receivable 9,000

Interest payable 12,000

General expenses 28,000

Insurance 6,000

Bad debts 1,000

Provision for bad and doubtful debts 4,500

Carriage outwards 3,000

Carriage inwards 5,000

1,764,000.0 1,764,000

Additional information

a. Closing inventory P40,000

b. Motor vehicles purchased P10, 000 was included in Purchases by mistake.

c. Electricity P1, 000 was owing at the end of the financial year.

d. Telephone bill was outstanding P2, 000.

e. Salaries and wages P20, 000 was paid in advance

f. Insurance of P1, 000 was paid in advance.

g. Depreciate non-current assets by 20%.

h. Provision for doubtful debts is 2% of accounts receivable. Required:

a. Prepare the Statement of Comprehensive Income for the year ended 31st December 2020.

b. Prepare the Statement of Financial Position as at 31st December 2020.