Question

The following list of Balances was extracted from the books of C. Radio, general merchant, at 31 December 2002. 6 500 1 000 10 000 30 800 100 Advertising Bad debts First National Bank Capital (balance at 1 January 2002) Cash Creditors Customs duty on purchase Debtors Discount Drawings 8 500 8 000 23 150 240 2 650 380 3 500 Fire and motor vehicle insurance Furniture and fittings at cost Accumulated depreciation on furniture and fittings at 1 January 2002 Freight on purchases 500 4 000 370 General expenses Motor vehicles at cost 7 500

Answer 1

INCOME STATEMENT
PARTICULAR		AMOUNT	PARTICULAR		AMOUNT
To Opening Stock		21,000.00	By sales	1,42,500.00
To Purchase	93,000.00		Sales Return	1,500.00	1,41,000.00
custom duty	8,000.00
Theft	1,000.00	1,00,000.00	By Closing Stock		21,500.00
To Freight		4,000.00
To Railage Inward		3,300.00
To Gross Profit		34,200.00
		1,62,500.00			1,62,500.00
To Advertising		6,500.00	By Gross Profit		34,200.00
To Provison for Bad Debt		2,350.00	By Rent (800*12)		9,600.00
To General Expenses		370.00
To Discount		240.00
To Fire and Motor Vehicle Insurance		380.00
To Motor Vehicle Expenses		1,860.00
To Railage outward		2,300.00
To Salary and wages		24,000.00
To Stationary		350.00
To Depreciation On Furniture and Fixture		350.00
To Depreciation On Motor Vehicle		1,300.00
To Net Profit		3,800.00
		43,800.00			43,800.00
Provison for Bad Debts
PARTICULAR		AMOUNT	PARTICULAR		AMOUNT
To Bad Debts	1,000.00		By Balance B/d		1,000.00
Additional Bad debt	150.00	1,150.00	By P&L		2,350.00
To Balance C/d		2,200.00
		3,350.00			3,350.00
BALANCE SHEET
LIABILITIES		AMOUNT	ASSETS		AMOUNT
Capital	30,800.00		Furniture and fitting		3,500.00
Drawing	2,650.00		Motor Vehicle		7,500.00
Net Profit	3,800.00	31,950.00	Debtors	23,150.00
First National Bank		10,000.00	Bad debts	1,150.00	22,000.00
Credtiors		8,500.00
Accumlated Depreciation			Stock		21,500.00
furniture and fixture	850.00		Cash		100.00
Motor Vehicle	2,300.00	3,150.00
Advance Rent		800.00
Wages Outstanding		200.00
		54,600.00			54,600.00