D
Dung18742
Guest
- 19/5/17
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- 28
Bruce runs a clothing store and has produced the following trial balance for the year ended 31st March 201X The trial balance produced does not balance and he has asked for your help.
You are required to help Bruce by preparing journal entries to correct the trial balance and deal with the year-end adjustments and to produce an income statement for the year and a balance sheet as at 31st March 201X.
Bruce – Trial Balance as at 31 March 201X
[TBODY] [/TBODY]Adjustments:
1. The land and buildings are shown at cost including £100,000 for the land. Buildings are depreciated on a straight line basis over 40 years
2. Shop fittings are depreciated at 25% on a reducing balance basis
3. Bruce took goods valued at £15,000 from the shop for his own use during the year
4. Insurance includes £18,000 for the year to December 2010
5. An accrual for heat and light for £6000 is needed
6. Bank interest of £2,000 per month has been paid. The cash account has been correctly adjusted but no other entries have been made.
7. Stock at 31 March 2010 is valued at a cost of £240,000
8. A bad debt of £4000 is to be written off and the provision for doubtful debts should be maintained at 2% of the remaining receivables
9. Bruce sold some shop fittings at the end of the year for £10,000 he has recorded the cash but nothing else. The fittings cost £40,000 5 years ago.
You are required to help Bruce by preparing journal entries to correct the trial balance and deal with the year-end adjustments and to produce an income statement for the year and a balance sheet as at 31st March 201X.
Bruce – Trial Balance as at 31 March 201X
£’000 | £’001 | |
Accumulated depreciation of land and buildings | 40 | |
Accumulated depreciation of shop fittings | 50 | |
Bank loan | 250 | |
Capital | 93 | |
Carriage outwards | 16 | |
Cash at bank | 16 | |
Discounts allowed | 14 | |
Discounts received | 8 | |
Drawings - rút vốn | 45 | |
Heat and light | 34 | |
Insurance | 45 | |
Payables (Creditors | 80 | |
Land and buildings | 300 | |
Purchases | 550 | |
Provision for doubtful debts as at 1.4.09 | 5 | |
Receivables | 154 | |
Returns Inwards | 30 | |
Returns outwards | 20 | |
Sales | 1100 | |
Shop fittings | 120 | |
Stock (Inventory) as at 1.4.09 | 160 | |
Wages | 180 | |
TOTALS | 1648 | 1662 |
1. The land and buildings are shown at cost including £100,000 for the land. Buildings are depreciated on a straight line basis over 40 years
2. Shop fittings are depreciated at 25% on a reducing balance basis
3. Bruce took goods valued at £15,000 from the shop for his own use during the year
4. Insurance includes £18,000 for the year to December 2010
5. An accrual for heat and light for £6000 is needed
6. Bank interest of £2,000 per month has been paid. The cash account has been correctly adjusted but no other entries have been made.
7. Stock at 31 March 2010 is valued at a cost of £240,000
8. A bad debt of £4000 is to be written off and the provision for doubtful debts should be maintained at 2% of the remaining receivables
9. Bruce sold some shop fittings at the end of the year for £10,000 he has recorded the cash but nothing else. The fittings cost £40,000 5 years ago.