You are required to prepare a trading and profit and loss account for the year ended 31st December, 2017

1. The following balances were extracted on 31st December, 2017, from the books of K. Jackson who carried on business as a manufacturing stationers :
K. Jackson’s capital
2,00,000 Stock (on 1.1.17)
80,340
Furniture and fittings
6,840 Sales
3,75,340
Land and buildings
43,440 Sales returns
2,500
Drawings
8,400 Carriage
6,900
Cash at bank
4,860 General expenses
4,820
Cash in hand
300 Plant and machinery
28,860
Manufacturing wages
62,500 Provision for doubtful debts
6,200
Discounts allowed
5,280
Sundry creditors
24,900
Discounts received
3,980 Advertising
5,420
Bank charges
140 Rent and taxes
4,840
Loan from F. Ross
20,000 Sundry debtors
87,660
Office salaries
8,560 Bad debts
1,840
Purchases
2,65,440 Insurance
940
Purchases returns
1,940 Bills receivable
2,480
You are required to prepare a trading and profit and loss account for the year ended 31st December, 2017 and a balance sheet as on that date after taking into consideration the following:
(1) 10% depreciation to be written off plant and machinery.
(2) 5% depreciation to be written off furniture and fittings.
(3) Stationery used out of stock for business purposes amounted to 1,500.
(4) The unexpired insurance amounted to * 250.
(5) 500 were due on 31st December, 2017, for interest on the loan from F. Ross.
(6) The stock on 31st December, 2017 was valued at * 65,000.

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