Question
Prepare This-Is-A-Blast Statement of Profit or Loss for the period ended 31 December 2014 and Statement of Financial Position as at that date. This-Is-A-Blast's unadjusted
Prepare This-Is-A-Blast Statement of Profit or Loss for the period ended 31 December 2014 and Statement of Financial Position as at that date.
This-Is-A-Blast's unadjusted Trial Balance as at 31 December 2014
Particulars Dr Cr
Capital 200,000
Drawings 12,000
Bank balance 5,500
Cash in hand 7,000
Accounts receivables 40,000
Accounts payable 55,000
Inventory: Opening 18,000
Premises 150,000
Motor Vehicle 90,000
Fixtures and Fittings 65,000
Sales 255,600
Purchases 130,000
Returns inwards 7,500
Carriage outwards 4,500
Carriage inwards 6,500
Returns outwards 11,500
Motor expenses 10,400
Rent Received 20,000
Telephone charges 12,000
Wages and salaries 34,000
Insurance 10,600
Commission Received 14,800
Bad Debt 2,500
Provision for depreciation: Motor Vehicle 20,000
Provision for depreciation: Fixtures and Fittings 25,000
Provision for doubtful debt 3,600
Total 605,500 605,500
Additional information
a) Closing Inventory $25,000
b) Wages and Salaries prepaid $2,500
c) Commission Received owing $2,000
d) Insurance premium incurred is $1,000 per month commencing 1st March 2014.
e) Provision for doubtful debt is to be adjusted to 5% of Accounts Receivable
f) Depreciation is to be charged on Fixtures and Fittings at 10% using the Reducing Balance Method and on Motor Vehicle at 10% using the Straight Line Method
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