Prepare a trading and profit and loss account for the year ended 31st/12/2018 and a balance sheet
The following accounting information was extracted from the books of ABC Co. ltd for the year ended 31/12/2018
The following additional information as at 31 December 2018 is available:
- Rent is accrued by $6,200.
- Rates have been prepaid by $17,600.
- $44,220 of carriage represents carriage inwards on purchases.
- Equipment is to be depreciated at 15% per annum using the straight line method.
- The provision for doubtful debts to be increased by$800.
- Closing inventory was $271,020 at the end of the year.
Required:
Prepare a trading and profit and loss account for the year ended 31st/12/2018 and a balance sheet as at that date.
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About the Author - Dr Geoffrey Mbuva(PhD-Finance) is a lecturer of Finance and Accountancy at Kenyatta University, Kenya. He is an enthusiast of teaching and making accounting & research tutorials for his readers.
