The following Trial Balance was extracted from the books of N. Smith on 31 Decem
ID: 2536054 • Letter: T
Question
The following Trial Balance was extracted from the books of N. Smith on 31 December 2014. Prepare a Trading, Profit & Loss and Balance Sheet as at 31t December 2014. The vertical style would be preferred Capital Profit from 31/12/13 Premises at cost Machinery at cost Provision for Depreciation on machinery as at 31/12/13 Purchases Sales Opening Stock General Expenses Wages and Salaries Rent Lighting Expenses Bad Debts Provision for doubtful debts at 31/12/13 Debtors Creditors Bank 100,000 34,280 65,000 59,000 19,800 209,888 325,000 25,689 32,168 54,207 4,300 1,549 748 861 21,784 17,493 23,101 You are given the following additional information: () Stock as at 31/12/14 is 28,433 (i) Wages and Salaries due at 31/12/14 amounted to 900 (iii) Rent paid in advance at 31/12/14 amounted to 400 (iv) A depreciation charge is to be made on machinery at 15% per annum on costExplanation / Answer
Trading Account
In the Book of N Smith.
For the year ended 31st Mar14
DR
CR
Particular
Amount
Particular
Amount
To Opening Stock
25,689
By Sales
325,000
To Purchase
209,888
By Closing Stock
28,433
To Wages
54207+900
55,107
To Net Profit A/c
62,749
353,433
353,433
Trading Profit & Loss Account
To General Exp
32,168
By Net Profit
62,749
To Rent
3,900
(4300-400)
To Light Exp
1,549
To Bad Debts
748
To Dep on Machine
8,850
To Net Profit
15,534
62,749
62,749
Balance Sheet
As on 31st Mar'14
Liabilities
Amount
Assets
Amount
Capital
Premises
65,000
100000
Machinery
50,150
34280
59000-8850
15534
149,814
Closing Stock
28,433
Creditors
17,493
Debtors
21,784
Outstanding wages & Salaries
900
bank
23,101
Provision for Dep
19,800
Prepaid Rent
400
Provision for Dep
861
188,868
188,868
Trading Account
In the Book of N Smith.
For the year ended 31st Mar14
DR
CR
Particular
Amount
Particular
Amount
To Opening Stock
25,689
By Sales
325,000
To Purchase
209,888
By Closing Stock
28,433
To Wages
54207+900
55,107
To Net Profit A/c
62,749
353,433
353,433