Extracting Trading and Profit and Loss Account and statement of financial position from trial bal
NNN Co. ltd provided you with the following Trial Balance information as extracted from its books of accounts on 31/12/2018. Required, prepare Trading and Profit and Loss Account and statement of financial position as at that date.
Additional information
(i)Closing Inventory $14,080
(ii)Wages for causal workers outstanding $528
(iii)) Bad Debts $132
(iv)Provision for Doubtful Debts to be 5%.
(v)Rent expense is paid for 11 months.
(vi)Insurance premium is paid per annum, ended 28th February, 2019.
(vii)Loan from Chartered bank was taken on 1st July, 2018.
(viii)Provide Depreciation on Property& Equipment @ 10% & on Furniture @ 5% all at NBV.
SOLUTION
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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.
