The following transactions were extracted from the books of Odis Enterprises for the year ended 31st December 2018: 0) cash received from trade debtors N100,000
i. cash paid to suppliers N72,000
ii. expenses paid during the year were: rent- N2,500, general expenses N1,800
iv. cash of N5200 was withdrawn by the proprietor for personal use.
v. fixed assets valued at N8,000 on 31st December 2017 were to be depreciated at 10 per annum
Additional information:
31st December 2017 31st December 2018
Trade debtors 11,000 13,000
Trade creditors 4,000 6,500
Rent owing – 500
Cash 12,100 30,000
Stock 15,900 17,000
You are required to prepare:
(a) Statement of Affairs as at 1st January 2018
(b) Cashbook
(c) Trading Profit and Loss Account for the year ended 31st December 2018.
Explanation
Financial accounting practice Odis enterprise
(a) statement of affairs as at 1st January 2018
| N capital 43,000 Creditors 4,000 47,000 |
N fixed asset 8,000 stock 15,900 Debtors 11,000 cash 12,100 39,000 47,000 |
(b) Cashbook
| N Balance b/f 12,100 Receipts debtors 4,000 112,000 Balance b/d 30,600nm |
N suppliers 72,000 Rent 2,500 General exp 1,800 Drawings 5,200 Balance c/d 30,000 112,000 |
(c) Trading, profit, and loss account for the year ended 31st December 2018
| N Opening stock 5,900 Purchase(74,500+4,000+6,500) 84,500 Cost of goods available for sale 90,400 Less: closing stock 17,000 Cost of goods sold 73,400 Gross profit c/d 28,800 102,200 Rent (2,500+500) 3,000 General expenses 1,800 Dep.of fixd assets(10%x8000) 800 Net profit 23,200 28,800 |
N sales (100,000+13,200-11,000) 102,200 102,200 Gross profit b/d 28,800 28,800 |
(a) workings for total debtor account
N N
Bal b/d 11,000 cash 100,000
sales 102,200 Bal b/d 13,200
113,200nm 113,200nm
13,200nm
(b) Total creditors account
N N
cash 72,000 Bal b/d 4,000
Bal c/d 6,500 purchase 74,500nm
78,500nm 78,500nm
6500nm