Question

Study the document below and answer the questions that follow
DR (K) CR (K)
Sales 40,000.00
Purchases 35,000.00
Sale return 500.00
Purchases returns 620.00
Opening stock 1st January 2018 10,000.00
Wages and salaries 3,000.00
rate 600.00
Telephone 100.00
Shop fillings 4,000.00
Motor van 3,000.00
Debtors and creditors 950.00 1,500.00
Bad debts off 20.00
Capital 17,900.00
Cash at bank 1,020.00
Drawings 1,800.00
60,020 60,020

Note
a. Stock at 31.12.18 was valued at k12,000.00
b. Accrued wages k500.00 and salaries prepaid k100.00
c. Rates prepaid k50.00
d. Depreciate shop fittings at 5% and motor van 10%
REQUIRED
a. Draw up the trading profit and loss account for year ended 31st December
b. Prepare a balance sheet as 31st December 2018

Answer 1

Answer:

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