1 The Taal Balance of Boay Traders at Seplember 30, 2012 was peepured by the Acc

Question

1 The Taal Balance of Boay Traders at Seplember 30, 2012 was peepured by the Accountant Hory Traders Trlal Balance as at Seplember 30, 2012 aho ase peirvided the adational ooes as showm below 112 500 - Bales 2 250 375 52 500 I 500 Depreciation geowisicn on machinery und equiptien Rent 7 500 l 500 15 000 1 500 11 250 Bad debts Croditors2 Bank Cash 8250 4 125 3 000 750 7 500 163 125 -General expenses 163 125 Notes: ) Closing stock $9 000 Rent puud l atvace S200 // 4)Inaurance accrued $300 5) Provision for bad debt to be created $300 6) Depreciation on machinery and equipment for the period $1500 Required: Prepare Trading and Protit and Loss Accounts and Balance Sheet for the period ending September 30, 2012 10

Explanation / Answer

Bozy Traders Income Statement For the year ended September 30, 2012 Revenue Sales $112,500 Less: Return Inward $2,250 Net Sales $110,250 Cost of goods sold Opening stock $7,500 Add: Purchase $52,500 Add: Carriage Inward $750 Less: Return Outward $375 Less: Closing Stock $9,000 $51,375 Less: Expenses Salaries & wages expenses $18,200 Insurance Expenses $1,800 Dep. Expenses $1,500 Rent Expenses $15,250 Bad debts $1,800 General Expenses $7,500 Total Expenses $46,050 Net Income $12,825 Bozy Traders Statement of Owner's Equity For the year ended September 30, 2012 Owner's Capital, Beginning $37,500 Add: Net Income / (loss) $12,825 $50,325 Less: drawings $7,500 Closing $42,825 Bozy Traders Balance Sheet September 30, 2012 Assets Cash & Bank $7,125 Debtors $11,250 Less: Provision for Bad debts -$300 Closing Stock $9,000 Prepaid Rent $2,000 Premises $15,000 Machiner & Equipment $15,000 Less: Acc. Dep. - Equipment -$6,000 Total assets $53,075 Liabilities and Owner's Capital Liabilities Creditors $8,250 Accrued Salaries & wages Expenses $1,700 Accrued Insurance Expenses $300 Total Liabilities $10,250 Owner's Capital $42,825 Total Liabilities and Owner's Capital $53,075

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.