Uche who has been in
business as a grain’s merchant extracted the following balances from his books
as at 31st December, 2010
business as a grain’s merchant extracted the following balances from his books
as at 31st December, 2010
He gives the additional information
a.) Stock checked on 31st
December 2010 amounted toN8,450
December 2010 amounted to
b.) An invoice for stocks
received on 23rd December amounted toN26,480 was completely
omitted from the books
received on 23rd December amounted to
omitted from the books
c.) Rent for the fourth
quarter of 2010,N3,200 is outstanding
quarter of 2010,
d.) The insurance premium is
only for one half of 2010
only for one half of 2010
e.) Repairs include N2,000,
cost of anti-burglary devices installed on one of the motor vehicles
cost of anti-burglary devices installed on one of the motor vehicles
f.) Provide for depreciation
of 20% on fixed assets.
of 20% on fixed assets.
You are required to prepare Uche’s
Trading, Profit and Loss Account for the year ended 31st December,
2010 and a Balance Sheet as at the date.
Trading, Profit and Loss Account for the year ended 31st December,
2010 and a Balance Sheet as at the date.
Solution
Vertical Method
UCHE
TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER
2010
TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER
2010
UCHE BALANCE SHEET AS AT
31ST DECEMBER 2011
31ST DECEMBER 2011
