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The following trial balance was extracted from the book of J Abdulai at the close of
business on 28 February 2007.
Dr Cr
Le Le
Purchases and sales 92,800 157,165
Discounts 820 160
Van running cost 615
Allowance for doubtful debts 1 March 2006 405
Cash at bank 4,100
Cash in hand 324
Capital account 1 March 2006 11,400
Drawings 17,100
Account receivable and account payable 12,316 5,245
Bad debts written off 730
Office furniture 2,900
Delivery van 3,750
Rent 3,400
Inventory 1 March 2006 4,120
Wages and salaries 31,400
174,375 174,375
Notes:
(a) Inventory 28 February 2007 Le2,400.
(b) Wages and salaries accrued at 28 February 2007 Le340.
(c) Rent prepaid at 28 February 2007 Le230.
(d) Van running costs owing at 28 February 2007 Le72.
(e) Increase the allowance for doubtful debts by Le91.
(f) Provide for depreciation as follows: office furniture Le380; Delivery van Le1,250.
Required:
Draw up the income statement for the year ending 28 February 2007 together
with a balance sheet as at 28 February 2007.
QUESTION 2
Dr Cr
Le Le
Drawings 11,000
Inventory 1 September 2007 8,200
Purchases and Sales 26,000 40,900
Rent 4,400
Bank 1,500
Capital at 1 September 2007 19,700
Business rates 1,600
Provision for depreciation on motor vehicle 1,200
Sundry expenses 340
Account receivable and account payable 1,160 2,100
Motor vehicle at cost 9,000
63,900 63,900
M Kaikai, a sole trader, extracted the following trial balance from his books at the close of
business on 31 March 2009.
Dr Cr
Le Le
Cash 140
Purchases and Sales 61,000 127,245
Wages and salaries 39,200
Inventory 1 April 2008 7,940
Accounts receivable and accounts payable 12,418 11,400
Capital 1 April 2008 25,200
Bank overdraft 2,490
Fixtures and fittings 1,900
Discounts 2,480 62
Allowance for doubtful debts 630
Rent and insurance 8,870
Return inwards 3,486
Return outwards 1,356
Carriage outwards 3,210
Van 5,600
General office expenses 319
Drawings 21,400
Wages and salaries 39,200
168,383 168,383
Notes:
(a) Inventory 31 March 2009 Le6,805.
(b) Increase the allowance for doubtful debts by Le110 to Le470.
(c) Provide for depreciation as follows: Fixtures and fittings Le190; van Le1,400.
(d) Wages and salaries accrued at 31 March 2009 Le3,500; Office expenses owing Le16.
(e) Rent prepaid 31 March 2009 Le600.
Required:
Prepare the income statement for the year ending 31 March 2009 together with a balance
sheet as at date.
QUESTION 4
From the following trial balance of Fanta Sei, store owner, prepare an income statement for
the year ending 31 December 2007, and a balance sheet as at that date, taking into
consideration the adjustment shown below:
Trial balance as at 31 December 2007
Dr Cr
Le Le
Sales 400,000
Purchases 350,000
Rates 6,000
Capital 179,000
Sales returns 5,000
Telephone 1,000
Bank balance 3,000
Purchases returns 6,200
Accounts receivable and accounts payable 9,800 7,000
Opening inventory at 1 January 2007 100,000
Wages and salaries 30,000
Bad debts 200
Allowance for doubtful debts 800
Shop fittings at cost 40,000
Van at cost 30,000
Drawings 18,000
593,000 593,000
Required:
(a) Prepare a horizontal Trial balance, clearly stating the figure for CAPITAL.
(b) Prepare an Income statement for the ended 31st December 2018, and a statement of
financial position as at that date.