trial balance was obtained from the books
of Jake Forbes as at December 31, 2020 :
- The Following Trial Balance Was Obtained From The Books Of Jake Forbes As At December 31 2020 Prepare The Following 1 (135.38 KiB) Viewed 26 times
of Profit and Loss for
the year ending December 31, 2020.
Statement of Financial
Position at at December 31, 2020
DR CR DETAILS Capital Drawings 425,000 15,000 10% Loan 500,000 Building Repairs 18,500 Commission Received 38,750 Opening Stock 55,240 Insurance 22,300 Bad Debts 2,780 Sales 820,150 Wages and Salaries 66,400 Discounts 9,500 13,000 Loan Interest 31,000 Creditors 37,500 Returns 11,200 6,500 Rent Received 50,000 Purchases 570,000 Debtors 63,500 Provision for Bad Debts 3,140 Telephone Charges 17,500 Bank 47,120 Cash 9,240 Land and Building 620,000 74,000 Provision for Depreciation on Building Motor Vehicle 310,000 Provision for Depreciation on Motor Vehicle 52,000 Machinery and Equipment 290,000 Provision for Depreciation on Machinery & Equipment 45,000 2,112,160 2,112,160 Additional Notes a. Stock at year end was valued at $85,000 b. Wages is owing by $8,600 c. Insurance is prepaid by $2,300 d. During the year the owner took goods values at $10,000. This was not yet recorded e. The rent received is prepaid by $5,000 f. Commission income is owing by $6,250 The provision for bad debts is to be adjusted to 10% of debtors h. Depreciation charges are to be applied as follows ASSET RATE METHOD Land and Building 5% Reducing Balance Motor Vehicle 5% Straight Line Machinery and Equipment 5% Reducing Balance