Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following balances were extracted from the books of Astica Cardhu as at December 31 , 2021: Year end notes: a) Stock at December 31,

image text in transcribed
image text in transcribed
image text in transcribed
The following balances were extracted from the books of Astica Cardhu as at December 31 , 2021: Year end notes: a) Stock at December 31, 2021 was $65,300 however it appears that an additional amount, $2,700 was found in a store room. The amount was deemed material and should be accounted for. b) Depreciate Equipment at 10% on straight line, the motor vehicles at 15% on the straightline basis, fixtures \& Fittings 10% reducing balance basis c) Wages was prepaid $8,000 and rates owing $7,000 d) Commission Received owing $10,000 e) On October 1, 2012, the Astica took goods amounting to $15,000 from the warehouse and continued to do so at the beginning of every month up to March 1, 2022. f) The Provision for bad debts is to be revised to 20% of debtors g) On December 1,2021, Astica rented a section of the premises to Mos Quito at $25,000 per month Required: 1. Prepare the Statement of Profit or Loss for Astica Cardhu. 2. Prepare a Statement of Financial Position for Astica Cardhu Year end notes: a) Stock at December 31,2021 was $65,300 however it appears that an additional amount, $2,700 was found in a store room. The amount was deemed material and should be accounted for. b) Depreciate Equipment at 10% on straight line, the motor vehicles at 15% on the straightline basis, fixtures \& Fittings 10% reducing balance basis c) Wages was prepaid $8,000 and rates owing $7,000 d) Commission Received owing $10,000 e) On October 1, 2012, the Astica took goods amounting to $15,000 from the warehouse and continued to do so at the beginning of every month up to March 1, 2022. f) The Provision for bad debts is to be revised to 20% of debtors g) On December 1, 2021, Astica rented a section of the premises to Mos Quito at $25,000 per month Required: 1. Prepare the Statement of Profit or Loss for Astica Cardhu. 2. Prepare a Statement of Financial Position for Astica Cardhu

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

A New Auditors Guide To Planning Performing And Presenting IT Audits

Authors: Nelson Gibb, CIA, CISA, CISSP, Divakar Jain, CA, CPA, Amitesh Joshi, Surekha Muddamsetti, Sarabjot Singh

1st Edition

0894136852, 978-0894136856

More Books

Students also viewed these Accounting questions

Question

What licenses or permits will you need, if any?

Answered: 1 week ago

Question

1. Define the nature of interviews

Answered: 1 week ago

Question

2. Outline the different types of interviews

Answered: 1 week ago