Reference no: EM133166890
Question - The following balances were extracted from the books of Jelly Bean at the end of March 2020:
Details
|
DR
|
CR
|
Capital
|
|
75,000
|
Drawings
|
5,000
|
|
Insurance
|
6,300
|
|
Fixtures and Fittings
|
100,000
|
|
Provision for depreciation: Fixtures and fittings
|
|
6,000
|
Debtors
|
29,000
|
|
Commission received
|
|
10,000
|
Carriage Inwards
|
3,600
|
|
Returns
|
3,000
|
5,000
|
Discounts
|
1,500
|
2,000
|
Carriage Outwards
|
6,000
|
|
Creditors
|
|
28,000
|
Sales
|
|
139,800
|
Purchases
|
75,000
|
|
Loan
|
|
30,000
|
Motor Vehicle
|
50,000
|
|
Provision for depreciation: Motor Vehicle
|
|
15,000
|
Rent Received (from tenant)
|
|
7,200
|
Wages and Salaries
|
15,000
|
|
Bad debts
|
2,500
|
|
Provision for bad debts
|
|
1,400
|
Stock at April 1, 2019
|
15,500
|
|
Bank
|
|
25,000
|
Cash
|
32,000
|
|
|
344,400
|
344,400
|
Year end notes:
a) Closing stock at March 31, 2020 was $31,000
b) Depreciate the motor vehicle at 10% on the straight line and fixtures & fittings 10% reducing balance
c) Accrued wages was $5,000 and Commission Received is owing by $3,000
d) The monthly insurance premium to be paid is $950.
e) Jelly rented a section of the business premises to a tenant on November 1, 2019 for $1,400 per month.
f) The Provision for bad debts is to be revised to 10 % of debtors
Required -
1. Prepare the Statement of profit or loss for Jelly Bean.
2. Prepare Statement of financial position for Jelly Bean.