Question 1 The following balances have been extracted from the accounts of Peya, a sole trader,...

Question 1

The following balances have been extracted from the accounts of Peya, a sole trader, for the period ended 31 March 2020.
N$
Sales 427,726
Carriage inwards 476
Wages and salaries 64,210
Carriage outwards 829
Purchases 302,419
Rent and rates 12,466
Heat and light 4,757
Stock at 1 April 2019 15,310
Drawings 21,600
Equipment at cost 102,000
Motor vehicles at cost 43,270
Provision for depreciation
– equipment 22,250
– motor vehicles 8,920
Debtors 50,633
Creditors 41,792
Bank 3,295 cr
Sundry expenses 8,426
Cash 477
Capital 122,890
The following information as at 31 March 2020 is also available:
(1) N$350 is owing for heat and light
(2) N$620 has been prepaid for rent and rates
(3) Depreciation is to be provided for the year as follows:
equipment at 10% on cost and motor vehicles at 20% on cost
(4) Stock at 31 March2020 isN$16,480
Required:
(a) Prepare the trial balance for Peya (before any adjustments) as at 31 March 2020.
(b) Prepare the trading and profit and loss accounts for Peya for the year ending 31 March 2020.
(c) Prepare the balance sheet for Peya as at 31 March 2020.
(Total 31 marks)
Due Date:

Expert Solution

Trial Balance of M/s Peya for the period 31st Mar 2020
particulars	Amount Dr. (N$)	Amount Cr. (N$)
Sales		427726
Carriage I/W	476
Wage & Salaries	64210
Carriage O/w	829
purchases	302419
Rent & rates	12466
Heat & Light	4757
Opening Stocks	15310
Drawings	21600
Equipment at cost	102000
Motor Vehicles at cost	43270
provision for Depriciation - equipmen		22250
provision for Dep.- Motor vehicles		8920
Debtors	50633
Creditors		41792
Bank		3295
Sundry expences	8426
Cash	477
Capital		122890
Total	626873	626873
Trading account for M/s Peya for year ending 31st Mar 2020
Particulars	Amount Dr. (N$)	Particulars	Amount Cr N$
To opening Stock	15310	By Sales	427726
To purchases	302419	By Closing Stocks	16480
To Wage & Salaries	64210
To Carriage I/w	476
To Gross Profit	61791

	444206		444206


Profit & Loss account for M/s Peya for year ending 31st Mar 2020
Particulars	Amount Dr. (N$)	Particulars	Amount Cr. N$
To Carriage O/w	829	By Gross Profit	61791
to Rent & Rates N$ 12466
Less Advance paid N$ 620	11846
to Heat & light N$ 4757
Plus O/s for Heat & light N$350	5107
To Depriciation Equipment	10200
To Dep. Motor Vehicle	8654
To Sundry Expences	8426
To Net profit for the year	16729
	61791		61791
Balance Sheet of M/s Peya as on 31st Mar 2020
Liabilities		Assets
O/s Liability of Heat & Light exp	350	Advance for Rent & rates	620
Creditors	41792	Equipment 102000
Bank	3295	Less Provsion for Dep -22250
Capital 122890		Less Current year Dep.- 10200	69550
Less Drawings - 21600		Motor Vehicles 43270
Plus Net profit for year +16729	118019	lessProvision for Dep -8920
		Less Current year Dep. -8654	25696
		Debtors	50633
		Closing Stocks	16480
		Cash	477
	163456		163456
Note: Alternately, Depriciation on Equipment and Motor vehicles can Be shown on Liability side and Equipment and Motor Vehicles on Asset side may be shown on cost basis as under: Liability Asset Provision for Dep. Equipment (22250+10200) Equipment 102000 Dep.Motor Vehicle (8920+8654) Motor Vehicle 43270 Total of Balance Sheet Liability side (163456+22250+10200+8920+8654)= N$213480 Total of Balance Sheet Asset side = N$ 213480 (It will increase by provisioning amt of Dep. of Equipment & Motor vehicles ie N$ 50024 as now the both of these will be shown on cost basis on asset side in place of net of deprciation.

ekkarill92 answered 1 month ago

Question 5 a) Jamie operates as a sole trader. He has extracted the following data from...

Question 5 a) Jamie operates as a sole trader. He has extracted the following data from his books of account. Financial data extracts for the year ended 31st January 2019. 6 Sales Purchases Opening Inventory Closing Inventory REQUIRED £ 140 000 100 000 40 000 20 000 Prepare Jamie’s Trading Account for the year ended 31st January 2019. Clearly show the value of Cost of Sales and Gross Profit. b) Explain the difference between the straight-line method and the reducing...

The following accounts and account balances have been extracted from the accounting records of Catalina’s Guatemalan...

The following accounts and account balances have been extracted from the accounting records of Catalina’s Guatemalan Antiques, Inc at December 31, 2009. Balance Unearned rent revenue $ 15,500 Buildings 250,000 Inventory 7,500 Bonds payable (due in 2012) 200,000 Accounts payable 27,500 Note payable to bank due in 90 days 50,000 Retained Earnings (ending) 85,000 Premium on common stock (paid-in capital in excess of par) 75,000 Investment in stock of another company; intent is to hold long-term 50,000 Accounts receivable 46,000...

The following trial balance was extracted from the books of Al Mawaleh Traders, sole trader as...

The following trial balance was extracted from the books of Al Mawaleh Traders, sole trader as at 31 May 2018. Trial balance as at 31 May 2018 Particulars Debit Credit $ $ Capital 51,960 Drawings 4,080 Buildings at cost 53,000 Receivables and Payables 8,600 6,000 Opening Inventory 11,300 Salaries 5,080 Freight In 2,390 Freight Out 2,140 Insurance 2,790 Purchases and sales 97,600 140,385 Returns 980 1,640 Selling Expenses 1,440 Bad debts 541 Discount Received 960 Equipment at cost 8,000 Furniture...

The following balances have been extracted from the books of XYZ Company for the year to...

The following balances have been extracted from the books of XYZ Company for the year to 31/12/2019 Dr Cr US$ US$ Cash at bank and in hand 10,000 Plant and equipment: At cost 70,000 Accumulated depreciation (at 31.12.19) 25,000 Retained earnings (at 1.2.2020) 15,000 Profit for the financial year (to 31.12.19) 20,000 Share capital (issued and fully paid) 50,000 Inventory (at 31.12.19) 27,000 Trade payables 17,000 Trade receivables 20,000 127,000 127,000 Additional information: 1 Corporation tax owing at 31 December...

You have been asked to prepare the final accounts for W Smith, a sole trader, for...

You have been asked to prepare the final accounts for W Smith, a sole trader, for the year ended 31 December 2013. W Smith has forwarded to you all books of prime entry and ledgers, and in addition, has given you the following information: i) Mr Smith had taken £2,000 out of the business bank account to take his wife on holiday. ii) Up to last year, the machinery and vehicle used in the business had been depreciated using the reducing balance...

Joe Wright, a sole trader, extracted the following trial balance from his books at the close...

Joe Wright, a sole trader, extracted the following trial balance from his books at the close of business on 31st March 2006. GH¢ GH¢ Sales 400,000 Purchases 350,000 Sales returns 5,000 Purchases returns 6,200 Opening stock at 1st January 2006 100,000 Provision for doubtful debts 800 Wages and salaries 30,000 Rates 6,000 Telephone 1,000 Shop fittings at cost 40,000 Van at cost 30,000 Debtors and creditors 9,800 7,000 Bad debts 200 Capital 179,000 Bank balance 3,000 Drawings 18,000 593,000 593,000...

Q1. The following balances have been extracted from the books of Caswell Ltd as at 31...

Q1. The following balances have been extracted from the books of Caswell Ltd as at 31 December 2009. £ £ £1 ordinary shares 600,000 6% preference shares 600,000 5% debentures 480,000 Share premium account 330,000 Debenture interest paid 12,000 Bad debts written off 20,280 Provision for doubtful debts 24,480 Cash in hand 18,960 Debtors & Creditors 207,000 78,000 Bank balance 379,200 Land at cost 540,000 Buildings at cost 1,140,000 Fixtures and fittings at cost 660,000 Accumulated depreciation: Buildings...

The following balances have been extracted from the records of Pam Goal’s business as at 30th...

The following balances have been extracted from the records of Pam Goal’s business as at 30th July 2020. Pam’s business is called “Honeypot” and she sells cakes and confectionery from a small high street shop. RM Bank overdraft 2,100 Cash 450 Land and building 20,900 Account receivable - Sharon Evans 700 Account payable - Baking Bliss 1,100 Account receivable - Archie Eel 500 Capital account 20,150 Inventory at cost 1,200 Account payable - Sweet Things 400 The following transactions occurred...

“The following balances were taken from Jane's books who is a sole trader and operates a...

“The following balances were taken from Jane's books who is a sole trader and operates a catering business. Jane's trial balance for the year to 30th June 2019 was as follows: Trial Balance Dr (£) Cr (£) Equipment at cost 42,000 Accumulated depreciation of equipment as at 1st July 2018 35,000 Inventory as at 1st July 2018 50,800 Debtors 32,000 Bank / cash 112,678 Creditors 23,027 Provision for doubtful debts as at 1st July 2018 1,280 Long term...

QUESTION 1 The following list of balances was extracted from the books of Ketumbar Enterprise as...

QUESTION 1 The following list of balances was extracted from the books of Ketumbar Enterprise as at 30 June 2019. RM Purchases 84,750 Sales 149,750 Return inwards 3,250 Return outwards 2,250 Drawings 4,750 Inventory (1 July 2018) 12,950 Buildings 79,750 Motor vehicles (cost RM34,750) 22,150 Fixtures and fittings (cost RM24,250) 19,350 Cash at bank 15,600 Salaries 16,550 Carriage inwards 3,150 Carriage outwards 4,300 Account receivable 29,750 Account payable 14,750 Water and electricity 3,640 Insurance 2,160 Provision for...

Question