T. Bryan is a retailer whose Trial Balance at 2020 December 31 is given below: DR CR $ $ Purchases and Sales 72 000 119 400 Returns 750 Carriage Inwards 930 Wages and Salaries 27 670 General Expenses 4 750 Cash at Bank 4 210 Cash in Hand 150 Premises 62 520 Fixtures and Fittings 9 000 Inventory at 2020 January 01 5 550 Accounts Receivable and Payable 7 200 4 850 Motor Vehicle at cost 13 150 Provision for Depreciation on Motor Vehicle at 2020 January 01 2 630 Capital at 2020 January 01 82 500 Drawings 3 000 ---------- ---------- 210 130 210 130 ====== ====== The following additional information is available: 1. Inventory at 2020 December 31 was valued at $5 200. 2. General Expenses of $400 paid for the year 2021. 3. A debt of $200 is to be written off as bad. 4. Provision is to be made for doubtful debts of 5% on Accounts Receivables (after writing off the Bad Debt of $200) at 2020 December 31. 5. Depreciation is to be provided for 2020 as follows: Fixtures and Fittings at 10% using the straight -line method; Motor Vehicle at 20% using the reducing balance method. Prepare the following: A. Income Statement for year ended 2020 December 31. B. Balance Sheet as at 2020 December 31.
T. Bryan is a retailer whose
DR CR
$ $
Purchases and Sales 72 000 119 400
Returns 750
Carriage Inwards 930
Wages and Salaries 27 670
General Expenses 4 750
Cash at Bank 4 210
Cash in Hand 150
Premises 62 520
Fixtures and Fittings 9 000
Inventory at 2020 January 01 5 550
Accounts Receivable and Payable 7 200 4 850
Motor Vehicle at cost 13 150
Provision for
Motor Vehicle at 2020 January 01 2 630
Capital at 2020 January 01 82 500
Drawings 3 000
---------- ----------
210 130 210 130
====== ======
The following additional information is available:
1. Inventory at 2020 December 31 was valued at $5 200.
2. General Expenses of $400 paid for the year 2021.
3. A debt of $200 is to be written off as bad.
4. Provision is to be made for doubtful debts of 5% on Accounts Receivables (after writing off
the
5. Depreciation is to be provided for 2020 as follows:
Fixtures and Fittings at 10% using the straight -line method; Motor Vehicle at 20% using the
Prepare the following:
A. Income Statement for year ended 2020 December 31.
B. Balance Sheet as at 2020 December 31.
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