Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
SECTION A: COMPULSORY (36 MARKS) Q1) Following trial balance was extracted from the books of Amy who ran a textile business, at the close of
SECTION A: COMPULSORY (36 MARKS) Q1) Following trial balance was extracted from the books of Amy who ran a textile business, at the close of business on 30th Sept 2021 Or E Dr 3,200 400 73,500 100 1,800 7,000 500 Electricity Bank Capital Cash Accumulated Depreciation (at 1 Oct 2020): Furniture Vehicle Discounts Drawings Advertising Furniture Carriage Outward Carriage Inward General expenses Interest on investments received Machinery Provision for bad and doubtful debts (at 1 Oct 2020) Purchases Rates Sales Returns Stock (at 1 Oct 2020) Telephone Trade creditors Trade debtors Vehicle Wages and salaries 400 10,000 3,000 12,000 900 600 27,400 800 5,000 2.300 645,000 6,000 820,000 2000 4,000 47,000 1,300 13,000 42,000 35,000 77.600 920.900 920.900 Adjustments (show calculations): 1) Stock at 30 September 2021: 50,000 2) The provision for bad and doubtful debts is to be made equal to 6% of the Trade Debtors as at 30 September 2021 3) Furniture is to be depreciated at a rate of 15% on straight-line method 4) Vehicle is to be depreciated at a rate of 20% on a reducing balance basis 5) At 30 Sept 2021, amount owed/accrued for Electricity is 300 6) At 30 Sept 2021, Rates paid in advance is 1,000 Required: 1a) Prepare Amy's Statement of Profit and Loss Account for the year to 30 September 2021 (19 marks) 1b) Prepare Amy's Statement of Financial Position as at 30 September 2021 417 marks)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/6699fedd72b21_2846699fedce8029.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started