Question
The following balances were extracted from the books of Jelly Bean at the end of March 2020: Details DR CR Capital 75,000 Drawings 5,000 Insurance
The following balances were extracted from the books of Jelly Bean at the end of March 2020:
Details | DR | CR |
Capital |
| 75,000 |
Drawings | 5,000 |
|
Insurance | 6,300 |
|
Fixtures and Fittings | 100,000 |
|
Provision for depreciation: Fixtures and fittings |
| 6,000 |
Debtors | 29,000 |
|
Commission received |
| 10,000 |
Carriage Inwards | 3,600 |
|
Returns | 3,000 | 5,000 |
Discounts | 1,500 | 2,000 |
Carriage Outwards | 6,000 |
|
Creditors |
| 28,000 |
Sales |
| 139,800 |
Purchases | 75,000 |
|
Loan |
| 30,000 |
Motor Vehicle | 50,000 |
|
Provision for depreciation: Motor Vehicle |
| 15,000 |
Rent Received (from tenant) |
| 7,200 |
Wages and Salaries | 15,000 |
|
Bad debts | 2,500 |
|
Provision for bad debts |
| 1,400 |
Stock at April 1, 2019 | 15,500 |
|
Bank |
| 25,000 |
Cash | 32,000 |
|
| 344,400 | 344,400 |
Yearend notes:
a) Closing stock at March 31, 2020 was $31,000
b) Depreciate the motor vehicle at 10% on the straight line and fixtures & fittings 10% reducing balance
c) Accrued wages was $5,000 and Commission Received is owing by $3,000
d) The monthly insurance premium to be paid is $950.
e) Jelly rented a section of the business premises to a tenant on November 1, 2019 for $1,400 per month.
f) The Provision for bad debts is to be revised to 10 % of debtors
Required:
1. Prepare the Statement of profit or loss for Jelly Bean. (25 marks)
2. Prepare a Statement of financial position for Jelly Bean (15 marks)
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