QUESTION 1 The following trial balance was extracted from the books of T Bone Enterprises Ltd as at 31 st December 2020 PARTICULARS DR CR Capital account 20,500 Purchases 46,500 Sales 60,900 Repairs 848 Motor car (cost) 950 Car expenses 318 Freehold land buildings 10,000 Bank balance 540 Furniture fittings (cost) 1,460 Wages salaries 8,606 Discounts allowed 1,061 Discounts received 814 Drawings 2,400 Rates and insurance 248 Bad debts 359 Provision for bad debts, 1 st January 2020 140 Trade debtors 5,213 Trade creditors 4,035 General expenses 1,586 Stock, 1 st January 2020 6,300 TOTAL 86,389 86,389 The following matters are to be taken into account Stock at 31 st December 2020 was 8,800 Wages and salaries outstanding at 31 st December 2020 were 318 Rates and insurance paid in advance at 31 st December 2020 amounted to 45 During the year, Bone (a shareholder of the company) took goods ex stock valued at 200 for his own use No entry has been made in the books in this respect Depreciation is to be provided at the rate of 20 on the motor vehicle and 10 on furniture fittings The provision for bad debts is be reduced to 100 REQUIRED Prepare T Bone Enterprises Ltd s statement of financial position (balance sheet) as at 31 st December 2020 (20 marks)

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Posted on Jul 19, 2024

QUESTION 1

The following trial balance was extracted from the books of T Bone Enterprises Ltd as at 31^st December 2020.

PARTICULARS	DR	CR
Capital account		20,500
Purchases	46,500
Sales		60,900
Repairs	848
Motor car (cost)	950
Car expenses	318
Freehold land & buildings	10,000
Bank balance	540
Furniture & fittings (cost)	1,460
Wages & salaries	8,606
Discounts allowed	1,061
Discounts received		814
Drawings	2,400
Rates and insurance	248
Bad debts	359
Provision for bad debts, 1^st January 2020		140
Trade debtors	5,213
Trade creditors		4,035
General expenses	1,586
Stock, 1^st January 2020	6,300
TOTAL	86,389	86,389

The following matters are to be taken into account:

Stock at 31^st December 2020 was 8,800.
Wages and salaries outstanding at 31^st December 2020 were 318.
Rates and insurance paid in advance at 31^st December 2020 amounted to 45.
During the year, Bone (a shareholder of the company) took goods ex-stock valued at 200 for his own use. No entry has been made in the books in this respect.
Depreciation is to be provided at the rate of 20% on the motor vehicle and 10% on furniture & fittings.
The provision for bad debts is be reduced to 100.

REQUIRED

Prepare T Bone Enterprises Ltd.s statement of financial position (balance sheet) as at 31^st December 2020. (20 marks)