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    Final Account 2

    Uploaded by

    Abdurrauf Ibrahim
    This document provides the trial balance and financial information for Mr. T's trading business as of March 31, 2008. It includes accounts such as cash, stock, purchases, sales, expenses, assets and liabilities. The summary also lists additional information including closing stock, bad debts, depreciation rates, and prepaid expenses that are needed to prepare the income statement for the year and statement of financial position as of the ending date.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Final Account 2

    Uploaded by

    Abdurrauf Ibrahim
    16 views2 pages
    This document provides the trial balance and financial information for Mr. T's trading business as of March 31, 2008. It includes accounts such as cash, stock, purchases, sales, expenses, assets and liabilities. The summary also lists additional information including closing stock, bad debts, depreciation rates, and prepaid expenses that are needed to prepare the income statement for the year and statement of financial position as of the ending date.

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    Accounting

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    This document provides the trial balance and financial information for Mr. T's trading business as of March 31, 2008. It includes accounts such as cash, stock, purchases, sales, expenses, assets and liabilities. The summary also lists additional information including closing stock, bad debts, depreciation rates, and prepaid expenses that are needed to prepare the income statement for the year and statement of financial position as of the ending date.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views2 pages

    Final Account 2

    Uploaded by

    Abdurrauf Ibrahim
    This document provides the trial balance and financial information for Mr. T's trading business as of March 31, 2008. It includes accounts such as cash, stock, purchases, sales, expenses, assets and liabilities. The summary also lists additional information including closing stock, bad debts, depreciation rates, and prepaid expenses that are needed to prepare the income statement for the year and statement of financial position as of the ending date.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Assignment

    for Financial Accounting


    Student ID: BA10168
    Tutor ID: 101-23-FA

    The books of Mr T, a trader in tea showed the following balances as at 31 March 2008:

    N
    Opening stock of tea 100,000
    Purchases – Tea 400,000
    Salaries paid 80,000
    Buildings 95,000
    Cash in hand 2,000
    Cash at bank 135,000
    Rent, rates and council taxes 15,000
    Insurance premium paid 3,000
    Miscellaneous receipts 10,000
    Sales 720,000
    Discounts allowed 4,750
    Bad debts 3,250
    Building repairs 2,900
    Miscellaneous expenses 8,700
    Advertisement 20,000
    Commission to sales manager 32,400
    Furniture and fittings 35,000
    Air conditioners 30,000
    Sundry debtors 100,000
    Sundry creditors 80,000
    Loan on mortgage 70,000
    Interest paid on the above 3,000
    Prepaid expenses 4,000
    Drawings 18,000
    Bills payable (Current liability) 30,000
    Bank charges 2,000
    Legal charges 6,000
    Motor vehicles 80,000
    Travelling and conveyance 10,000
    Capital 280,000

    The following further information was obtained :


    1. Closing stock was N55,000.
    2. Legal charges include N5,000 for the cost of stamps and registration of a new building acquired during
    the year.
    3. Purchases include 4000 kg tea valued at N20,000, which was found totally spoilt. An insurance claim
    of N15,000 has been accepted by the insurance company.
    4. Travelling and conveyancing include proprietor’s personal travelling for which he is charged N4, 800.
    5. The sales manager is entitled to commission of 7.5% of the total sales. However any bad debts
    incurred during the year are deductible from such commission entitlements.
    6. Debtors include:
    7. N10, 000 due from M & C0 (Creditors include N18, 000 due to the same party).
    8. N5, 000 due from the sale of furniture.
    9. Further bad debts of N2, 000
    10. Provision for bad debts is to be created at 2% of net amount outstanding from trade debtors.
    11. Depreciation is chargeable as follows:
    Buildings 2.5%
    Furniture and Fittings 10%
    Air conditioners 15%
    Motor vehicles 20%
    12. Miscellaneous receipts represent sales proceeds of furniture, whose written down value was N12, 000.
    13. Prepaid expenses include insurance premiums for the next year.

    Required:
    Prepare a Trial Balance and income statement for the year ended 31st March 2008 and a State f Financial
    Position as at that date.

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