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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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