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ISSo FP
ISSo FP
QUESTION 1
The following Trial balance was extracted from the Books of Mega Enterprise as at 31
December 2017.
DR CR
Capital 200,000
Duty on purchases 2,300
Insurance 6,000
Inventory as at 1 January 2017 70,000
Interest on loan 2,500
Account receivable and account payable 20,450 24,500
Purchase and sales 200,000 280,000
Land and building 265,550
Returns 2,300 1,850
Accumulated depreciation – Office equipment 9,850
Accumulated depreciation – Motor vehicles 50,000
10% Loan 265,000
Cash 7,400
10% Fixed deposit 10,000
Discount 2,500 5,000
Carriage outwards 8,200
Utilities 1,500
Bank 40,000
Office equipment 28,000
Salary and wages 25,000
Motor vehicles 140,000
Drawings 3,000
General expenses 3,500
Commissions 2,800 4,800
841,000 841,000
Additional information:
1. Inventory as at 31 December 2017 was valued at $40,000
2. Included in the carriage outwards is carriage inwards amounting to $1,320.
3. Depreciation for the year are to be provided as follows:
• Office equipment Straight line method, 10% per annum
• Motor vehicles Reducing balance method, 15% per annum
4. Fixed deposit was invested on 1 July 2017. The half year interest was not yet received.
5. One of the employees was given an advance salary of $700.
6. The owner took goods worth $2,000 and cash $1,500 for personal use.
7. The following expenses are still outstanding as at 31 December 2017.
• General expenses $600
• Utilities $250
Required:
a) Prepare the Statement of profit or loss for the year ended 31 December 2017
b) Prepare the Statement of financial position as at 31 December 2017
QUESTION 2
The following Trial Balance was extracted from the books of Smart Enterprise as at 31
December 2014.
Required:
a) Prepare the statement of profit or loss for the year ended 31 December 2014.
b) Prepare the Statement of financial position as at 31 December 2014
QUESTION 3
The following is a trial balance for Yeye as at 31st December 2017
Debit($) Credit($)
Office equipment 60,000
Building 125,000
Accounts Receivables 60,000
Accounts Payable 38,050
Office expenses 4,000
Purchases 65,000
Sales 170,000
Inventory at 1st January 2012 63,000
Sales discount 2,050
Sales return & allowances 1,500
Purchase return & allowances 6,500
Freight Out 6,000
Rent and insurance expense 8,000
Allowance for doubtful accounts 1,500
Dividend 2,500
Wages and salaries expense 8,500
Purchase discount 4,500
Share Capital - Ordinary 175,000
Bank Overdraft 35,000
Cash 25,000
430,550 430,550
Required
(i) Prepare an Income Statement for the year ended December 31, 2017.
(ii) Prepare a Statement of Financial Position at December 31, 2017.
QUESTION 4
Koffi Ange, a sole trader, extracted the following Trial Balance from the business books as at
30 April 2019.
Dr$ Cr$
Sales 230,150
Sales returns 2,210
Purchases 96,100
Purchases returns 1,450
Carriage outwards 780
Discounts allowed 2,840
Discounts received 1,680
Rent received 7,400
Heat and light 3,810
General expenses 55,800
Motor expenses 6,200
Salaries 30,100
Bad debt written off 680
Allowance for doubtful debt 700
Drawings 22,500
Loan interest 1,200
10% Loan 13,000
Equipment 24,050
Accumulated depreciation for equipment 9,100
Motor vehicles 38,000
Accumulated depreciation for motor vehicles 24,020
Inventory at 1 May 2018 7,500
Receivables 37,250
Payables 8,940
Bank 7,420
Capital 40,000
336,440 336440
QUESTION 5
The following trial balance was extracted from the ledger account of Bob & Sons, a sole
proprietor as at 31 December 2016.
Dr$ Cr$
Building, at cost 650,000
Office equipment at cost 135,000
Plant and Machinery 263,500
Accumulated depreciation (as at 1 January 2016)
Building 39,000
Office equipment 27,000
Plant and Machinery 65,875
Purchases 248,000
Sales
500,000
Inventory 1 January 2016 27,500
Discount allowed 4,800
Returns inwards 3,200
Wages and Salaries 64,885
Rent 5,580
Insurance 6,000
Trade receivables 145,000
Trade payables 132,750
Provision for bad debt 24,840
Bank overdraft 58,956
Cash in hand 5,400
Long term loan 350,000
Capital 1 January 2016 360,444
1,558,865 1,558,865