Question
QUESTION 3 The following balances were extracted from the books of John & Co. for the year ended December 31, 2020. Details $ Trade expenses
QUESTION 3
The following balances were extracted from the books of John & Co. for the year ended December 31, 2020.
| Details | $ |
| Trade expenses | 800 |
| Carriage outwards | 5800 |
| Sales | 240000 |
| Bills payable | 12000 |
| Creditors | 78600 |
| Internet bill | 2800 |
| Stationary | 1800 |
| Returns inwards | 5200 |
| Returns outwards | 2000 |
| Office fixtures | 4000 |
| Cash in hand | 2000 |
| Cash at bank | 19000 |
| Rent and Rates | 4400 |
| Capital | 71600 |
| Stock on 1st January | 44000 |
| Bills receivables | 18000 |
| Purchases | 156000 |
| Wages | 11200 |
| Insurance | 2800 |
| Sundry debtors | 120000 |
| Carriage inwards | 3200 |
| Commission paid | 3200 |
Foot notes: the company recorded closing stock $100,000
Required
Prepare the trading and profit and loss Account (6 marks)
Prepare the balanced sheet (6 marks)
Given sales revenue was reduced by 24.5% calculate net profit (4 marks)
Assuming that total expenses increased by 8.14% calculate net profit (4 marks)
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Survey of Accounting
Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor
4th edition
77862376, 978-0077862374
