The following Trial Balance was obtained from the books of Mayberry Ltd at December 31, 2016. Debit Credit $ $ Fixtures and Fittings 100 000 Provision for depreciation (Fixtures & Fittings) 16 000 Motor Vehicles 95 000 Provision for depreciation (Motor Vehicles) 7 900 Capital 156 700 Bank Loan 25 000 Sales 250 000 Insurance 7 500 Wages and salaries 12 000 Bad debts written off 2 000 Purchases 144 500 Inventory at Jan 1, 2016 20 000 Discounts Received 18 000 Bank 50 000 Cash 10 500 Discounts Allowed 3 000 Drawings 15 600 A/c Receivables 26 000 A/c Payables 15 200 Provisions for bad debts 1 500 Carriage Outwards 4 200 Carriage Inwards 5 000 Returns 3 500 8 500 498 800 498 800 Additional Notes at December 31, 2016 i. Insurance accrued $1 500 ii. Salaries prepaid $3 000 iii. The provision for bad debts must be increased to $2 000 iv. Depreciation Fixtures & Fittings 10% on cost, and Motor Vehicles 10% on the reducing balance method. v. Inventory at the end of the year is valued at $25 000 Prepare a Trading, Profit and Loss account and Balance Sheet from the information provided.
The following
Debit Credit
$ $
Fixtures and Fittings 100 000
Provision for
Motor Vehicles 95 000
Provision for depreciation (Motor Vehicles) 7 900
Capital 156 700
Bank Loan 25 000
Sales 250 000
Insurance 7 500
Wages and salaries 12 000
Purchases 144 500
Inventory at Jan 1, 2016 20 000
Discounts Received 18 000
Bank 50 000
Cash 10 500
Discounts Allowed 3 000
Drawings 15 600
A/c Receivables 26 000
A/c Payables 15 200
Provisions for bad debts 1 500
Carriage Outwards 4 200
Carriage Inwards 5 000
Returns 3 500 8 500
498 800 498 800
Additional Notes at December 31, 2016
i. Insurance accrued $1 500
ii. Salaries prepaid $3 000
iii. The provision for bad debts must be increased to $2 000
iv. Depreciation Fixtures & Fittings 10% on cost, and Motor Vehicles 10% on the
v. Inventory at the end of the year is valued at $25 000
Prepare a Trading,
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