You are required to prepare the final accounts of a trader

Assignment Help Corporate Finance

Reference no: EM13379403

You are required to prepare the final accounts of a trader from the following information:

Assets and Liabilities:

	1.1.2008 $	31.12.2008 $
Furniture	18,000	19,050
Stock	24,000	21,000
Debto$	48,000	?
Credito$	33,000	45,000
Prepaid Expenses	1,800	2,100
Outstanding Expenses	6,000	5,400
Cash in hand and at bank	3,600	1,875

Cash transactions during the year 2008:

Receipts from Debto$ (after allowing 2 1/2% discount)	1,75,000
Bills Receivable discounted (at an average rate of 2%)	18,375
Paid to Creditor (@ 2% discount)	1,17,600
Freight inward	9,000
Drawings	21,000
Furniture purchased	3,000
4% Investments purchased at 96% (on 1.7.2008)	28,800
Expenses including salary	43,500
Miscellaneous receipts	1,500

During the year Bills Receivable received were $30,000; $6,000 of which are endo$ed in favour of creditor, of the later a bill for $ 1,200 was dishonoured.

Goods costing $ 2,700 were used for advertising materials

Goods are invariably sold to show a profit of 50% on cost

Difference in cash, if any, is to be treated as drawings or introduction of capital.

Provision for doubtful debts is to be provided @ 2 1/2% on debto$.

Reference no: EM13379403

Questions Cloud

Shri vas dev keeps his books on single entry system from : shri. vas dev keeps his books on single entry system. from the following particulars prepare trading and profit and

Mr vasanth reddy whose accounts are recorded by single : mr. vasanth reddy whose accounts are recorded by single entry only with rs 10000 lent by his wife and rs 20000 of his

1 describe some healthcare situations in which an agent has : 1. describe some healthcare situations in which an agent has taken advantage of a principal. now describe some

M renu is a retail trader dealing with software components : m. renu is a retail trader dealing with software components. she follows the practice of paying creditors for goods

You are required to prepare the final accounts of a trader : you are required to prepare the final accounts of a trader from the following informationassets and liabilities1.1.2008

Your company invests funds in greece the company claims : your company invests funds in greece. the company claims that the investment will grow to 10 times the original

The following is the balance sheet of mr raghu as on mar : the following is the balance sheet of mr. raghu as on mar 31

The nation of ectenia has 20 competitive apple orchards : the nation of ectenia has 20 competitive apple orchards which sell apples at the world price of 2. the following

On 142008 mrs parul commenced business she did not maintain : on 1.4.2008 mrs. parul commenced business. she did not maintain proper books of accounts. at the end of the year

User Account

All Pages