Question
The following trial balance was extracted from the books of Big Bamboo Limited on December 31, 2020 Big Bamboo Ltd Trial Balance as at January
The following trial balance was extracted from the books of Big Bamboo Limited on December 31, 2020
Big Bamboo Ltd | ||
Trial Balance as at January 1, 2020 | ||
Motor vehicle at cost | 10,600 |
|
Provision for depreciation on Motor Vehicle |
| 2,120 |
Building at cost | 90,000 |
|
Provision for depreciation on Buildings |
| 1,800 |
Stock at January 1, 2020 | 53,000 |
|
Carriage inwards | 500 |
|
Debtors | 50,130 |
|
Returns Inwards | 6,000 |
|
Returns Outwards |
| 5,560 |
Bad debt provision |
| 1,100 |
Cash | 3,200 |
|
Creditors |
| 30,350 |
Bank overdraft |
| 15,500 |
Sales |
| 600,000 |
Purchases | 440,000 |
|
Wages | 93,200 |
|
Insurance | 54,100 |
|
Discount received |
| 8,300 |
Drawings | 14,000 |
|
Capital |
| 150,000 |
814,730 | 814,730 |
Additional Information:
1. Stock at December 31, 2020 $80,000
2. Payment of $10,100 for insurance relates to the first quarter of 2021.
3. Wages owing $4,800
4. Provision for bad debt is to be increased to $1,500
5. Depreciation on fixed assets:
- Motor vehicles 10% on cost
- Buildings 15 % on the reducing balance method
Required:
Prepare for Big Bamboo Limited:
(a) An income statement for the year ended December 31, 2020
(b) A statement of financial position as at December 31, 2020
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