Question
Question 5 The following trial balance was extracted from the books of Al Mawaleh Traders, sole trader as at 31 May 2018. Trial balance as
Question 5
The following trial balance was extracted from the books of Al Mawaleh Traders, sole trader as at 31 May 2018.
Trial balance as at 31 May 2018
| Debit | Credit |
| $ | $ |
Capital |
| 51,960 |
Drawings | 4,280 |
|
Premises at cost | 54,000 |
|
Sundry debtors and creditors | 7,500 | 6,228 |
Opening stock | 11,100 |
|
Salaries | 5,280 |
|
Carriage inwards | 2,190 |
|
Carriage outwards | 2,340 |
|
Rates and insurance | 2,790 |
|
Purchases and sales | 97,400 | 140,185 |
Returns inwards and outwards | 780 | 1,440 |
Advertising | 1,041 |
|
Bad debts | 240 |
|
Discount Received |
| 960 |
Office equipment at cost | 6,000 |
|
Shop fittings at cost | 18,000 |
|
Provision for depreciation: |
|
|
Office equipment |
| 1,200 |
Shop fittings |
| 4,800 |
Cash in hand | 1,020 |
|
Bank overdraft |
| 7,488 |
Provision for bad debts | 300 | |
|
|
|
| 214,261 | 214,261 |
You are given the following additional information:
(i) Stock valued at 31 May 2008 was $12,600
(ii) Salaries due but unpaid $1,800
(iii) Rates and insurance prepaid $310
(iv) The provision for bad debts is to be adjusted to 5% of debtors outstanding on 31 May 2008
(v) Depreciation is written off fixed assets as follows:
Office equipment 10% per annum using the straight line basis
Shop fittings 5% per annum using the reducing balance basis
You are required to:
Prepare the Statement of Profit or Loss (Income Statement) for the year ended 31 May 2018 and a Statement of Financial Position as at that date,
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