Name
Subject
Abdul Wahab (025-20-12638)
Accounting For Managers
Assignment # 02 (28.10, 28.11, 28.13)
28.10
J Wright, A sole Trader
Adjustment entries
a)
b)
c)
d)
e)
Particulars
BS
IS
Wages & Salaries Accrued
Wages & Salaries Payable
Office Expenses
Office Expenses Payable
Rent Prepaid
Rent Expense
Provison for doubtful debt Exp
Provison for doubtful debt
Depiciation Exp (Fixture & fittings)
Allowance For Deprication
Depiciation Exp (Van)
Allowance For Deprication
DR
CR
6805
6805
3500
3500
16
16
600
600
110
110
190
190
1400
1400
J Wright, A sole Trader
Income statement
As on 31 March 2009
₤
Net Sales
Sales
Retrun Inward
Discount
Net Sales
Less: Cost of good sold
Opening stock
Purchases
Discount
Return Outwrd
Net Purchases
Closing stock
Cost of Good Sold
Gross Profit
Less: Operating Expenses
Carriage Outward
Rent & Insurance (8870-600)
Provison for doubtful debt
Wages & Salaries (39200+3500)
General office expenses (319+16)
Depreciation On Fixture & fittings
Depreciation On Van
Total Operating Expenses
Net Profit
₤
₤
127,245
(3,486)
(2,480)
121,279
7,940
61,420
(62)
(1,356)
60,002
(6,805)
(61,137)
60,142
3,210
8,270
110
42,700
335
190
1,400
(56,215)
3,927
J Wright, A sole Trader
Balance sheet
As on 31 March 2009
Amount
Non Current Assets
Fixtures & Fittings
Depreciation
Net Value
Van
Depreciation
Net Value
Toatal NCA
Current Assets
Closing Stock
Debtors
Provison For doubful Debt
Cash
Rent Prepaid
Toatal Current Assets
Capital employed
Amount
1,900
(190)
1,710
5,600
(1,400)
4,200
Amount
Current Liabilties
Creditor
Wages & Salaries Payable
Office Expense Payable
Bank Overdraft
Total Liabilities
11,400
3,500
16
2,490
Onwer;s Equity
Opening Capital
Less Drawing
Add: net profit
Closing capital
25,200
(21,400)
3,927
Amount
17,406
5,910
6,805
12,418
(740)
140
600
19,223
25,133 Capital employed
7,727
25,133
28.11
John Brrown, Store owner
Adjustment entries
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Particulars
BS
IS
Wages Accrued
Wages Payable
Rates Prepaid
Rates Expenses
Provison for doubtful debt Exp
Provison for doubtful debt
Telephone expense
Telephone account payable
Depiciation Exp (Shop fittings)
Allowance For Deprication
Depiciation Exp (Van)
Allowance For Deprication
DR
CR
120000
120000
5000
5000
16
16
180
180
110
110
4000
4000
6000
6000
John Brrown, Store owner
Income statement
As on 31 December 2007
₤
Net Sales
Sales
Sales Return
Net Sales
Less: Cost of good sold
Opening stock
Purchases
Purchases Return
Net Purchases
Closing stock
Cost of Good Sold
Gross Profit
Less: Operating Expenses
Provison for doubtful debt
Wages & Salaries (30000+5000)
Rates (6000-500)
Telephone (1000+220)
Bad Debts
Depreciation On Shop fittings
Depreciation On Van
Total Operating Expenses
Net Profit
₤
₤
400,000
(5,000)
395,000
100,000
350,000
(6,200)
343,800
(120,000)
(323,800)
71,200
180
35,000
5,500
1,220
200
4,000
6,000
(52,100)
19,100
John Brrown, Store owner
Balance sheet
As on 31 December 2007
Amount
Non Current Assets
Shop Fittings
Depreciation
Net Value
Van
Depreciation
Net Value
Toatal NCA
Current Assets
Closing Stock
Debtors
Provison For doubful Debt
Rates Prepaid
Bank Balance
Toatal Current Assets
Net Assets/ Capital employed
Amount
Amount
Current Liabilties
Creditor
Wages Payable
Telephone account payable
Total Liabilities
40,000
(4,000)
36,000
30,000
(6,000)
24,000
Amount
7,000
5,000
220
12,220
60,000
Onwer;s Equity
Opening Capital
Less Drawing
Add: net profit
Closing capital
120,000
9,800
(980)
500
3,000
179,000
(18,000)
19,100
180,100
132,320
192,320 Net Assets/ Capital employed
192,320
28.13
Mr Chai - Wine Merchant
Adjustment entries
(a)
(b)
(c)
(d)
(e)
Particulars
BS
IS
Insurance Prepaid
Insurance Expense
Heating & Lighting Accrued
Heating & Lighting payable
Rates Prepaid
Rated Expense
Provision for doubtful debt Exp
Provision for doubtful debt
DR
CR
17750
17750
1120
1120
1360
1360
5435
5435
223
223
Mr Chai - Wine Merchant
Income statement
As on 30 April 2007
₤
Net Sales
Sales
Discount Allowed
Return Inwards
Net Sales
Less: Cost of good sold
Opening stock
Purchases
Returns Out
Discount Received
Carriage inward
Net Purchases
Closing stock
Cost of Good Sold
Gross Profit
Less: Operating Expenses
Provison for doubtful debt
Carriage outward
Rent, rates & Insurance (25973-1120-5435)
Heating & lighting (11010+1360)
Postage, Stationary & telephone
Advertising
Salaries & Wages
Bad debts
Depreciation
Total Operating Expenses
Net Profit
₤
₤
259,870
(2,306)
(5,624)
251,940
15,654
135,680
(13,407)
(1,750)
11,830
132,353
(17,750)
(130,257)
121,683
223
4,562
19,418
12,370
2,410
5,980
38,521
2,008
12,074
(97,566)
24,117
Mr Chai - Wine Merchant
Balance sheet
As on 30 April 2007
Amount
Non Current Assets
Fixture & fittings
Depriciation
Net Value
Toatal NCA
Current Assets
Closing Stock
Cash in Hand
Cash at Bank
Trade debtors
Provision for doubtful debt
Insurance Prepaid
Rates Prepaid
Toatal Current Assets
Net Assets/ Capital employed
Amount
Amount
Current Liabilties
Creditor
Heating & lighting Payable
Total Liabilities
120,740
(63,020)
57,720
Amount
19,840
1,360
21,200
57,720
Onwer;s Equity
Opening Capital
Less Drawing
Add: net profit
Closing capital
17,750
534
4,440
24,500
(735)
1,120
5,435
83,887
(18,440)
24,117
89,564
53,044
110,764 Net Assets/ Capital employed
110,764