Question

Particulars Dr Cr

Capital 6000

Cash 400

Creditors 5900

Debtors 5000

Furniture at cost 8000

General expenses 14000

Insurance 2000

Purchases 21000

Sales 40000

Telephone 15000

51,900 51900

Pine started business on 1st October 2008. The following is his trial balance at 30th September 2009.

The following information was obtained after the trial balance had been prepared.

1. Stock at 30th Sept 2009 was 3000

2. Furniture is to be depreciated at a rate of 15 percent on cost

3. At September 2009, Pine owed $500 for telephone expenses and insurance had been prepaid by 200.

Required;

Prepare Pine’s trading and profit and loss account and balance sheet for the year ending 30th Sept 2009.

2. Dale has been in business for some years. The following is his trial balance at 31st October 2007

Particulars Dr Cr

Bank 700

Capital 85000

Depreciation (at 1November 2006)

Office equipment 14000

Vehicles 4000

Drawing 12300

Heating and Lighting 3000

Office expenses 27000

43000 103 000

Office equipment, at cost 35000

Rates 12000

Purchases 240000

Sales 350 000

Stock (at 1November 2006) 20 000

Trade Creditors 21 000

Trade Debtors 61 000

Vehicles at cost 16 000

Wages and salaries 47 000

474,000 474, 000

Additional information

1. Stock at 31st October 2007 is 26,000

2. Amount owning for electricity at 31st October 2007is $1500

3. At 31st Oct 2007, $ 2000 had been paid in advance for rates

4. Depreciation is to be charged on the office equipment for the year to 31st Oct 2007 at a rate of 20 percent on cost and on the vehicles at a rate of 25 percent on cost.

Required

Prepare Dale’s Trading and profit and loss account for the year to 31st October 2007 and a balance sheet as at that date.

Answer 1