Question

QUESTION 10 The following trial balance has been extracted from the books of SEREBOUR ENT. on 30 November 2003 Sales Returns Debtors and creditors Office equipment 125,658 1,902 7,983 6,341 11,257 - cost 10,000 accumulated depreciation 11/2002 1,550 Vehicle -cost 3,500 accumulated depreciation 1/1/2002 700 Purchases Stock at 1/1/2002 Carriage inwards Carriage outwards Vehicle expenses Electricity Wages and salaries Rent and business rates Stationery and postages Bank deposit account Bank Discount allowed and received VAT creditor 64,726 5,000 908 272 1,349 1,803 11,550 8.800 2,681 10,000 4,797 5,652 3,765 1,325 PAYE creditor Capital at 1 December 2002 Drawings 453 4,300 15,000 oan 16.000 163,636 163.636 Following the extraction of the above trial balance from the ledgers and an examination of the accounting records, the following additional information were obtained.

Answer 1

SEREBOUR ENTERPRISE

Trading & Profit & Loss Account for the year ending 30th Nov 2003

Particulars	Amount	Particulars	Amount
Opening stock Purchases      64726 Less: Returns 6341 Carriage inwards Wages & Salaries   11550 Add: Outstanding 1050 Gross Profit C/d Interest on loan Carriage outwards Electricity Stationery & postages Discount allowed Bank charges Bad debts Written off Provision for doubtful debts Depreciation : Office equipment     917 Motor vehicles           642 ------------------ Vehicle Expenses          1349 Less : prepaid road tax 10          : prepaid insurance 210 ------------------------- Rent & business rates     8800 Less : prepaid                     400 Less: Outstanding paid     2000 --------------------             Net profit c/d	5000 58385 908 12600 52563 ------------- 129456 ========= 1467 272 1803 2681 5652 60 1207 201 1559 1129 6400 34364 --------- 56795 ---------	Sales      125658 Less: Returns 1902 Closing stock Gross Profit b/d Interest on deposit Discount Received              Net profit b/d	123756 5700 ------------ 129456 ========= 52563 467 3765 56795 --------- 34364

Calculation of Provision for doubtful debts:

11257-1207= 10050

10050*2/100=201

Calculation of Depreciation:

Office equipment = 10000*10/100=1000*11/12=917

Motor vehicles       =3500*20/100=700*11/12=642

Balancesheet as on 30th Nov 2003

Liabilities	Amount	Assets	Amount
Capital                   4300 Less : Drawings   15000 Add: Net profit   34364                               ------------- Loan     16000 Add : interest on loan 1467 Creditors Wages outstanding VAT Creditor PAYE Creditor	23664 17467 7983 1050 1325 453	Vehicle 3500 Less: depreciation 1342 Office Equipment     10000 Less: depreciation 2467 Bank deposit 10000 Add: interest 467 Bank Debtors      11257 Less : Bad debts 1207 Less : provision 201 Closing stock Prepaid road tax Prepaid insurance Prepaid rent	2158 7533 10467 4797 9849 5700 10 210 400

NB: Data inappropriate

Financial Year(period) is not given

Thankyou