Q1 by linfengfengfz

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									Question 1

The following trial balance was extracted from the books of A. Scholes at the
close of business on 31 December 2004
                                                         Dr         Cr
                                                         €           €
Sales                                                               19,740
Purchases                                               11,280
Cash at bank                                             1,140
Cash in Hand                                                210
Capital account 1st Jan 2004                                         9,900
Drawings                                                 2,850
Office Furniture                                         1,440
Rent                                                     1,020
Wages and Salaries                                       2,580
Discounts Received                                                     690
Discounts Allowed                                           360
Debtors                                                  4,920
Creditors                                                            2,490
Stock 1st Jan 2004                                       2,970
Provision for bad and doubtful debts 1st Jan 2004                      270
Delivery Van                                             2,400
Van running Costs                                           450
Bad Debts written off                                    1,470

                                                        33,090      33,090


Notes
(a) Stock 31 December 2004 €3,510
(b) Wages and salaries accrued at 31 December 2004 €90
(c) Rent prepaid at 31 December 2004 €140
(d) Van running costs owing at 31 December 2004 €60
(e) Increase the provision for Bad and Doubtful Debts by €60
(f) Provide for depreciation as follows: Office furniture €180 and Delivery Van €480

Required:
Draw up the trading profit and loss account for the year ended 31 December 2004
together with a balance sheet as at that date.
Question 2

T. Morgan, a sole trader, extracted the following trial balance from the
books at the close of business on 31 December 2003
                                                            Dr         Cr
                                                            €          €
Sales                                                                 41,970
Purchases                                                  22,860
Bank Overdraft                                                         4,350
Cash in Hand                                                    90
Capital account 1st Jan 2003                                           7,200
Drawings                                                    2,880
Fixtures and Fittings                                       1,200
Delivery Van                                                2,100
Wages and Salaries                                          8,940
Discounts Received                                                     1,440
Discounts Allowed                                              930
Returns Inward                                                 810
Returns Outward                                                           570
Carriage Outwards                                           2,160
Rent and Insurance                                          1,740
Stock 1st Jan 2003                                          5,160
Provision for bad and doubtful debts 1st Jan 2003                         660
Debtors                                                    11,910
Creditors                                                              6,060
General Office Expenses                                     1,470

                                                          62,250     62,250


Notes
(a) Stock 31 December 2003 €4290
(b) Wages and salaries accrued at 31 December 2003 €210, and Office expenses owing €20
(c) Rent prepaid at 31 December 2003 €180
(d) Increase the provision for Bad and Doubtful Debts by €150 to €810
(e) Provide for depreciation as follows: Fixtures and Fittings €120 and Delivery Van €300


Required:
Draw up the trading profit and loss account for the year ended 31 December 2004
together with a balance sheet as at that date.
Question 3
From the following information trial balance of John Brown, a store owner,
prepare a trading account and profit and loss account for the year ended
31 December 2005, and balance sheet as at that date.

                                                     Dr          Cr
                                                     €            €
Sales                                                           400,000
Purchases                                          350,000
Sale returns                                         5,000
Purchase returns                                                  6,200
Opening stock at 1 Jan 2004                        100,000
Provision for bad debts                                             800
Insurance                                             6,000
Wages and salaries                                   24,000
Rates                                                 4,800
Discount Allowed                                      1,200
Telephone                                             1,000
Shop fittings at cost                                40,000
Van at cost                                          30,000
Debtors                                               9,800
Creditors                                                         7,000
Bad debts                                                 200
Capital                                                         179,000
Bank balance                                         3,000
Drawings                                            18,000
                                                   593,000      593,000


Required

(a)   Stock at the close of business was valued at €20,000
(b)   Insurance have been prepaid by €1200
(c)   Telephone is accrued by €200
(d)   Rates have been prepaid by €600
(e)   The provision for bad debts is to be adjusted so that it is 3% of trade debtors.

Required:
Draw up the trading profit and loss account for the year ended 31 December 2005
together with a balance sheet as at that date.
Question 4
The following trial balance has been extracted from the ledger
of Mr Yousef a sole trader.
                        Trial balance as at 31 December 2006

                                                  Dr        Cr
                                                  €          €
Sales                                                      138,078
Purchases                                        82,350
Carriage                                          5,144
Drawings                                          7,800
Rent, rates and insurance                         6,622
Postage and Stationery                            3,001
Advertising                                       1,330
Salaries and Wages                               26,420
Bad Debts                                           877
Provision for bad debts                                           130
Debtors                                          12,120
Creditors                                                        6,471
Cash on hand                                        177
Cash at bank                                      1,002
Stock 1 Jan 2006                                 11,927
Equipment at Cost                                58,000
Accumulated Depr                                            19,000
Capital                                                     53,091
                                                216,770    216,770

The following additional information is available
Notes
(a) Rent is accrued by €210
(b) Rent have been prepaid by €880
(c) €2,211 of carriage represents carriage inwards on purchases
(d) Equipment is to be depreciated at 15% per annum using the straight line method.
(e) The provision for bad debts to be increased by €40
(f) Stock at the close of business has been valued at €13,551

Required
Prepare a trading and profit and loss account for the year ended 31 Dec 2006 and a balance
sheet as at that date.
Question 5
Mr Chai has been trading for some years as a wine merchant. The following
list of balances has been extracted from his ledger as at 31 December 2007

                                                             Dr          Cr
                                                             €           €

Capital                                                                 83887
Sales                                                                  259870
Trade Creditors                                                         19840
Returns out                                                             13407
Provision for bad debts                                                   512
Discounts Allowed                                             2306
Discounts Received                                                        1750
Purchases                                                  135680
Returns Inwards                                              5624
Carriage outwards                                            4562
Drawings                                                    18440
Carriage Inwards                                            11830
Rent, rates and insurance                                   25973
Heating and lighting                                        11010
Postage, Stationery and Telephone                            2410
Advertising                                                  5980
Salaries and Wages                                          38521
Bad Debts                                                    2008
Cash on Hand                                                  534
Cash at bank                                                 4440
Stock as at 1 Jan 2007                                      15654
Trade Debtors                                               24500
Fixtures and fittings - at cost                            120740
Accumulated Depreciation on fixtures and fittings                        63020
Depreciation                                                 12074

                                                           442286      442286

The following additional information as at 31 Dec 2007 is available

(a)   Stock at the close of business was valued at €17,750
(b)   Insurance have been prepaid by €1,120
(c)   Heating and lighting is accrued by €1,360
(d)   Rates have been prepaid by €5,435
(e)   The provision for bad debts is to be adjusted so that it is 3% of trade debtors.

Required
Prepare Mr Chai's trading and profit and loss account for the year ended 31 Dec 2007
and a balance sheet as at that date.
The following trial balance was extracted from the books of J. Jagger at the
close of business on 31 December 2008.
                                                         Dr         Cr
                                                         €           €
Sales                                                               28,370
Purchases                                               16,000
Cash at bank                                              2,000
Cash in Hand                                              1,100
Capital account 1st Jan 2008                                          9,900
Drawings                                                  3,200
Delivery Van                                              2,400
Office Furniture                                          2,200
Rent                                                      1,400
Wages and Salaries                                        2,600
Discounts Allowed                                           690
Discounts Received                                                      360
Debtors                                                   5,500
Creditors                                                             2,490
Stock 1st Jan 2008                                        3,000
Provision for bad and doubtful debts 1st Jan 2008                       270
Van Repair Costs                                            500
Bad Debts written off                                       800

                                                         41,390     41,390


Notes
(a) Stock 31 December 2008 €5,000
(b) Wages and salaries accrued at 31 December 2008 €100
(c) Rent prepaid at 31 December 2008 €140
(d) Van repairs costs owing at 31 December 2008 €300
(e) Increase the provision for Bad and Doubtful Debts by €200
(f) Provide for depreciation as follows: Office furniture €200 and Delivery Van €300

Required:

    1       ETB with Adjustments/Nominal Legers
    2       FTB
    3       Workings for Profit and Loss account and Balance Sheet
    4       Trading, Profit and Loss Account for year ended 31 December 2008
    5       Balance Sheet as at 31 December 2008
T Morgan Adjustments

               Dr            Closing Inventory (BS)                  Cr          Dr        Closing Inventory (P/L)                 Cr
(A)
                                                                                                         12/31/2003
  12/31/2003   Stock              4290                                                                 Stock                     4290
                                         Bal c/d                   4290          Bal c/d        4290

                                  4290                             4290

  1/1/2004 Bal b/d                4290                                                                 Bal b/d                   4290


(B)

               Dr            Wages and Salaries                      Cr          Dr        Accrual                                 Cr

  12/31/2003   Bal b/d            8940                                                                   12/31/2003
               Accrual             210                                                               Wages                        210
                                         P/L                       9150          Bal c/d         230 Office Exp                    20

                                  9150                             9150                          230                              230

                                                                                                       Bal b/d                    230

                             Dr          Office Expenses                    Cr

                12/31/2003   Bal b/d               450
                             Accrual                20
                                                         P/L              470

                                                   470                    9150




(C)
                             Dr                       Rent                  Cr             Dr                    Prepayment                Cr

                12/31/2003   Bal b/d            1740 Prepayment           180
                                                                                           Prepayment            180
                                                         P/L              1560                                         Bal c/d            180

                                                1740                      1740                                   180                      180

                                                                                           Bal b/d               180



(D)
                             Dr                    Bad Debts                Cr             Dr            Provision for Bad Debts           Cr

                                                         Prepayment       180                                          Bal b/d            660
                             Increase in Prov      150                                                                 Increase in Prov   150
                                                         P/L              -180             Bal c/d               810

                                                   150                    1740                                   810                      810

                                                                                                                       Bal b/d            810

(E)
                                                                                                              Office Furn
                             Dr                    Depreciation             Cr             Dr           Accumulated Depreciation           Cr


                             Charge                420                                                                 Charge for Yr      120
                                                         P/L              420              Bal c/d               120

                                                   420                    420                                    120                      120

                                                                                                                       Bal b/d            120


                                                   Van
                             Dr          Accumulated Depreciation           Cr


                                                         Charge for Yr    300
                             Bal c/d               300

                                                   300                    300

                                                         Bal b/d          300

								
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