Question

28.12A The following trial balance has been extracted from the ledger of Mr Yousef, sole trader. Trial Balance as at 31 May 2016 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts 138,078 82,350 144,000 622,001 330 26,420 877 Provision for doubtful debts Debtors Creditors Cash in hand Cash bank Stock at June 2015 Equipment cost accumulated depreciation Capital 130 12,120 6,471 2,211 11,927 58,000 19,000 53,090 216,770 216,770 The following additional information as at 31 May 2016 is available: Rent is accrued by €210. Rates have been prepaid by €880. €2,211 of carriage represents carriage inwards on purchases. Equipment is to be depreciated at 15% per annum using the straight line method. The provision for doubtful debts is to be increased by €40. Stock at the close of business has been valued at €13,551. Required: Prepare trading and profit and loss account for the year ended 31 May 2016 and balance sheet as of that date.

          28.12A The following trial balance has been extracted from the ledger of Mr Yousef, sole trader.

Trial Balance as at 31 May 2016
Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts
138,078
82,350 144,000 622,001 330 26,420 877
Provision for doubtful debts Debtors Creditors Cash in hand Cash bank Stock at June 2015 Equipment cost accumulated depreciation Capital
130
12,120
6,471
2,211 11,927
58,000
19,000 53,090 216,770
216,770

The following additional information as at 31 May 2016 is available: Rent is accrued by €210. Rates have been prepaid by €880. €2,211 of carriage represents carriage inwards on purchases. Equipment is to be depreciated at 15% per annum using the straight line method. The provision for doubtful debts is to be increased by €40. Stock at the close of business has been valued at €13,551.

Required: Prepare trading and profit and loss account for the year ended 31 May 2016 and balance sheet as of that date.

Show more…

Added by Heather T.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Manasvee Singh

03/02/2022

Step 1

Step 1: Adjust the trial balance for the additional information provided. Show more…

Show all steps

lock

Thanks for your feedback!

28.12A The following trial balance has been extracted from the ledger of Mr Yousef, sole trader. Trial Balance as at 31 May 2016 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts 138,078 82,350 144,000 622,001 330 26,420 877 Provision for doubtful debts Debtors Creditors Cash in hand Cash bank Stock at June 2015 Equipment cost accumulated depreciation Capital 130 12,120 6,471 2,211 11,927 58,000 19,000 53,090 216,770 216,770 The following additional information as at 31 May 2016 is available: Rent is accrued by €210. Rates have been prepaid by €880. €2,211 of carriage represents carriage inwards on purchases. Equipment is to be depreciated at 15% per annum using the straight line method. The provision for doubtful debts is to be increased by €40. Stock at the close of business has been valued at €13,551. Required: Prepare trading and profit and loss account for the year ended 31 May 2016 and balance sheet as of that date.

Play audio

Feedback

Powered by NumerAI

Manasvee Singh and 53 other subject Principles of Accounting educators are ready to help you.

Ask a new question

Labs

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs

Recommended Videos

Recommended Textbooks

Transcript

0:00 Hello everyone.

00:01 So in this question the following trial balance has been extracted from the ledger of mr.

00:05 Yourself, a sole trader.

00:07 Now in this question we need to we need to prepare trading and p &l account as well as balance sheet starting with trading account trading account for the year ended 31st may 2006 now we'll make the table first so it is particulars amount, particulars and amount.

01:31 Now we'll take firstly opening stock that is given to us as 11 ,927.

01:48 Next purchase, which is 82 ,350.

02:03 Sales, 1 ,38 ,078 ,000.

02:15 Wages and salaries.

02:19 Which is 26 ,420.

02:36 Next we have carriage inward that is 2 ,211.

02:52 Then closing stock is also given to us.

03:00 That is 13 ,551.

03:05 Now we'll calculate our gross margin.

03:15 So the cross margin will come 28 ,721.

03:21 We'll balance both the sides.

03:25 That is $1 .50 ,006 to 9 and again $1 .50 .6 to 9.

03:35 So here we have completed our trading account.

03:39 Now moving ahead to p &l, that is, profit and loss account.

03:47 So again, we'll make the same format.

03:50 Just leave pnl account for the year ended 31st may...

Ace is your personal tutor. It breaks down any question with clear steps so you can learn.

Start Using Ace

Continue solving this problem

Create a free account to:

View full step-by-step solution
Ask follow-up questions with Ace AI
Save progress and study later