Question

Part 3: Final Accounts - 30 marks The following Trial Balance was extracted from the books of A.Scholes at the close of business on 28 February 2019 Dr. $ Cris Purchases and Sales 11.280 19.740 Cash in Bank 1.140 Cash in hand 210 Equity Account 1 March 2018 9.900 Drawings 2,850 Office furniture 1.4401 Rent 1.020 Wages and Salaries 2,580 Discounts 690 360 Debtors un Creditors 4,920 1 2.490 Stock 1 March 2018 2.970 Provision for bed debt 270 Delivery van 2.400 Van running costs 450 Bad debt written oll 8 10 Total 32.760 32.760 Additional information related to the reporting year asat 28 February 2019: (a) Stocks $3,510. (b) Wages ans Salaries accrued $90. (c) Rent prepaid $ 140. (d) Van running costs owing $60. (e) Increase the provision for Bad debt by $60. (1) Provide the depreciation as follow: - Omice furniture $ 180; • Delivery van $480. Required: Draw up the Income statement for the year ending 28 February, 2019 and the Balance sheet as at 28 February 2019.

Answer 1

Income Statement for the year 2019
Revenue
Sales (net of discounts)	19,050 $
Discount received	360 $
Total (A)	19,410 $
Expenses
Cost of Goods Sold	10,740 $
Wages and Salary Expenses	2,670 $
Rent	880 $
Van running expenses	510 $
Bad debt written off	810 $
Provision for doubtful debt	60 $
Depreciation	660 $
Total (B)	16,330 $
Net Income	3,080 $

Balance Sheet for the year ended 2018
Assets
Non Current Asset
Office Furniture	1,260 $
Delivery Van	1,920 $
Current Asset
Accounts receivable (net)	4,590 $
Inventory	3,510 $
Prepaid Rent	140 $
Cash in Bank	1,140 $
Cash in hand	210 $
Total	12,770 $
Equity & Liabilities
Equity
Capital	10,130 $
Non Current liabilities	-
Current liabilities
Accounts payable	2,490 $
Wages and salary payable	90 $
Van running cost payable	60 $
Total	12,770 $