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    The Following Trial Balance Was Extracted From Boipelo

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    1932godfrey

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    © All Rights Reserved
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    The Following Trial Balance Was Extracted From Boipelo

    Uploaded by

    1932godfrey
    4 views2 pages

    Copyright

    © © All Rights Reserved

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    Copyright:

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    Download as docx, pdf, or txt
    4 views2 pages

    The Following Trial Balance Was Extracted From Boipelo

    Uploaded by

    1932godfrey

    Copyright:

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

    1.

    The following trial balance was extracted from Boipelo’s books after the
    preparation of the income statement for the year ended 30 April 20–6.

    Account Dr ($) Cr ($)


    Premises 120,000
    Accumulated depreciation - Premises 24,000
    Capital 150,000
    Trade receivables 8,750
    Bank overdraft 18,500
    Motor vehicle 15,500
    Accumulated depreciation - Motor vehicle 5,500
    Drawings 9,300
    Trade payables 11,400
    Cash 200
    Loan repayable 20-9 25,000
    Equipment 42,000
    Accumulated depreciation - Equipment 10,500
    Accrued expenses 1,200
    Inventory 14,800
    Prepaid income 600
    Prepaid expenses 2,100
    Accrued income 800
    Profit for the year 11,150
    Total 213,000 213,000

    Required:

    Prepare the Statement of Financial Position for Boipelo as at 30 April 20–6, including
    prepaid and accrued income and expenses.

    2. The following trial balance was extracted from Mbali’s books as at 31 December 20–
    6:

    Account Dr ($) Cr ($)


    Sales revenue 190,000
    Purchases 130,000
    Inventory (1 January 20–6) 15,000
    Salaries and wages 20,000
    Rent expense 10,000
    Account Dr ($) Cr ($)
    Utilities expense 2,500
    Premises 150,000
    Accumulated depreciation - Premises 20,000
    Motor vehicle 30,000
    Accumulated depreciation - Motor vehicle 7,000
    Equipment 25,000
    Accumulated depreciation - Equipment 5,000
    Trade receivables 12,000
    Trade payables 18,000
    Cash 500
    Bank overdraft 5,000
    Loan repayable 20-8 30,000
    Capital 200,000
    Drawings 10,000
    Total 421,500 421,500

    Additional information:

    1. Inventory at 31 December 20–6 was valued at $18,000.


    2. Depreciation methods and rates to be applied are as follows:
    o Premises: Straight-Line Method at 2% per annum
    o Motor vehicle: Declining Balance Method at 10% per annum
    3. Salaries and wages of $1,500 were accrued.
    4. Rent expense of $500 was prepaid.
    5. Interest income of $300 was earned but not yet received.

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