Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1075 marks) The following trial balance was extracted from the books of Tab Company as at 31 December 2019 Debit Credit Owner's capital at

image text in transcribed
image text in transcribed
Question 1075 marks) The following trial balance was extracted from the books of Tab Company as at 31 December 2019 Debit Credit Owner's capital at January 2019 2.559.000 Drawings 41 900 Office equipment -cost 3,300,000 Motor vans-cost 1,100,000 Accumulated depreciation at January 2019 - Office equipment 939.400 - Motor vans 260.000 Trade receivables SO2000 Trade payables 931,000 Inventory. at January 2019 53.100 3.200 Bank 700.000 Allowance for doubtful debts, at 1 January 2019 11.800 Sales 6,499,400 Purchases 3.776.500 Discounts allowed 33.000 Carriage 18.200 Discounts received 10,400 Returns inwards 44000 Returns outwards 19.800 Rent and rates 500,000 Salaries 490,100 Repairs 13.900 Electricity as and water 83.900 Distribution expenses 149.000 Other operating expenses 115.000 11.230,500 11 200, 500 Additional information: (1) (2) The closing inventory at 31 December 2019 was 72.000 Carriage included $13,200 transportation charges for goods purchased from overseas suppliers. The remaining were carriage outwards (3) Depreciation was to be provided as follows - Office equipment 10% per annum using straight-line method Motor Vans 20% per annum using reducing balancing method (4) Rent and rates prepaid at 31 December 2019 were 533,000 (5) Electricity, gas and water crued 31 December 2019 were $2,000 (6) One of the company's customers was confirmed bankrupt and the amount of $50,000 owed to the company had to be written of (7) The allowance for doubtful debts at 31 December 2019 was to be increased to $24,000 Required: Prepare for Tab Company (a) a statement of profit or loss and other comprehensive income for the year ended 31 December 2019 and (41 marks) (b) a statement of financial position as at 31 December 2019. (34 marks) .................. FROM .......................... DATE NO. A statement of profit or loss and other compleable in camer for the e nded 3. December 2011 Samole Sale Sale La less Return W els 4,137, foo 61.960 4,075.870 bllooo 63.900 624.LOR 15200 75 too 3317 2o Less cost of ale g Opening wentary 32:8.500 Add: purchases 4 lees : letuou outward 14 Add: Carriage inward 639300 967,800 Lese congiuwerten 207.209 Gross profit Leas opened Discount allowed 2000 Electricity (27, 130t 8620) 35tto Rent and mte.c861600-33 620) 827,980 37,70 Sudry expenses Moto expenses 25,680 Wages and Glass Director's fee 2000no Debeuture ideregt paid ( 35.600 +35,600 71,200 burviture and Esture (Hul,000x20%) 142,200 Motor vehicles (1826800-316080) x 30% 63216 Tempockent les of trade receivallet-34700) Xtool 89.2000 2307666 989674 - Podfits before tax Less 2 Juscouse tan expense Profit or loss and other comprehicable for the year 860174

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions

Question

How do Finance Companies differ from banks and thrift institutions?

Answered: 1 week ago