Question

following are the ledger balance of Mr John as on 31st December tr 2016
Dr.
trade expenses 2025
discount received 1370
salary 9287
travel expense 1430
discount allowed 400
capital 60100
drawings 6500
leasehold premier 40000
furniture 5000
Bank charges 134

Cr.
opening stock 15000
cash at bank 4650
reserves for double full debit 720
purchase 66235
sales 94000
carriage inward 2100
bad debts written off 1350
Sunday debtors 16000
sundry creditors 15421
rent 15000

adjustment
1. Mr John wife work in business and allowed a salary of 24 00 per annum. this amount has been included in drawings account.
2. write 2000 premises and 500 of furniture.
3. 4% of the salary debit as the 31st December 2016 is recoverable and should be written off the reserve for double full debate should be maintained at 5%.
4. rain due but not paid is 500 and the salary included 250 paid in advance to staff.
5. stock as on 31st December 2016 is valued a 15500.

Answer 1

following are the ledger balance of Mr John as on 31st December tr 2016
Dr.
trade expenses 2025
discount received 1370
salary 9287
travel expense 1430
discount allowed 400
capital 60100
drawings 6500
leasehold premier 40000
furniture 5000
Bank charges 134

Cr.
opening stock 15000
cash at bank 4650
reserves for double full debit 720
purchase 66235
sales 94000
carriage inward 2100
bad debts written off 1350
Sunday debtors 16000
sundry creditors 15421
rent 15000

adjustment
1. Mr John wife work in business and allowed a salary of 24 00 per annum. this amount has been included in drawings account.
2. write 2000 premises and 500 of furniture.
3. 4% of the salary debit as the 31st December 2016 is recoverable and should be written off the reserve for double full debate should be maintained at 5%.
4. rain due but not paid is 500 and the salary included 250 paid in advance to staff.
5. stock as on 31st December 2016 is valued a 15500.