11. From the following trial balance of John Brown, 12.

12. Mr Chai has been trading for some years as a

store, owner, prepare a trading and profit and loss wine merchant. The following list of balances has
account for the year ended 31 December 20x7, and been extracted from his ledger as at 30 April 20x7,
a balance sheet as at that taking into consideration the end of his recent financial year.
the adjustments shown below.
Capital 83,887
DR CR Sales 259,870
Trade creditors 19,840
Sales 400,000 Return outwards 13,407
Provision for bad debts 512
Purchases 350,000 Discounts allowed 2,306
Discounts received 1,750
Sales return 5,000 Purchases 135,680
Returns inwards 5,624
Purchases returns 6,200 Carriage outwards 4,562
Drawings 18,440
Opening stock 100,000 Carriage inwards 11,830
Rent, rates & insurance 25,973
Prov for Bad debts 800 Heating and lighting 11,010
Postage, stationery & telephone 2,410
Wages & salaries 30,000 Advertising 5,980
Salaries and wages 38,521
Rates 6,000 Bad debts 2,008
Cash in hand 534
Telephone 1,000 Cash in bank 4,440
Stock as at 1 May 20x6. 15,654
Shop fittings(cost) 40,000 Trade debtors 24,500
Fixtures and fittings(cost) 120,740
Van at cost 30,000 Provision for depreciation on fixture and fittings-as at 30
April 20x7 63,020
Debtors 9,800 Depreciation 12,074

Creditors 7,000 The following additional information as at 30 April 20x7

is available:
Bad debts 200 a) Stock at the close of business was valued at
$17,750.
Capital 179,000 b) Insurances have been prepaid by $1,120.
c) Heating and lighting is accrued by $1,360.
Bank balance 3,000 d) Rates have been prepaid by $5435.
e) The provision for bad debts is to be adjusted so
Drawings 18,000 that it is 3% of trade debtors.
Required:
593,000 593,000 Prepare Mr. Chai’s trading and profit and loss account
for the year ended 30 April 20x7 and a balance sheet as
i) Closing Stock at 31 December 20x7 at that date.
$120,000.
ii) Accrued wages $5,000
iii) Rates prepaid $500.
iv) Provision for bad debts to be increased
to 10% of debtors.
v) Telephone account outstanding $220.
vi) Depreciate fittings at 10% and van at
20%.
13. The following Trial Balance was extracted from the 14. The following Trial Balance was extracted from the
books of D. Martin, a sole trader, on 31 December Year 6. books of Tom Wainwright, a sole trader, on 30 June Year
Dr CR 5.
Capital at 1 January Year 6 184,460 Dr Cr
Drawings 40,000 Purchases/Sales 57,341 80,340
Freehold Premises at cost 160,000 Stock 1 July Year 4 4,173
Motor vehicles at cost 30,000 Wages 10,650
Office Furniture at cost 10,000 3 year Loan – R Driscoll 6,000
Stock at January Year 6 21,480 Cash in hand 242
Provision for depreciation, 1 January Year 6 5 year lease on Premises 15,000
Motor vehicles 8,000 Discounts allowed/ received 410 715
Office furniture 2,500 Balance at bank 1,150
Rent 18,000 Drawings 7,326
Electricity 3,800 Repairs to premises 720
Salaries 50,100 Carriage inwards 246
Purchases and sales 191,200 337,200 Carriage outwards 584
Carriage outwards 6,000 Motor van, at cost 7,600
Insurance 4,200 Accumulated depreciation on motor van 1,900
Carriage inwards 1,200 Lighting and heating 630
Debtors and creditors 31,400 7,880 Debtors and creditors 2,720 1,635
Bad debts 2,400 Equipment 4,100
Provision for doubtful debts 1,970 Motor van running expenses 1,370
Bank interest 720 Return inwards/outwards 265 311
Bank overdraft 7,000 Rates 1,260
Cash in hand 600 Insurance 114
Telephone 3,200 Capital 22,700
Return inwards and outwards 4,950 3,600 114,751 114,751
Discounts 2,700 2,090
Loan from D Samson repayable Year 12 26,000 The following additional information was available:
Commission received 1,250 1) The stock at 30 June Year 5 was valued at $4.620.
581,950 581,950 2) The lease on premises had 4 years still to run at
Additional information at 31 December Year 6: 30 June Year 5.
1) Stock was valued at $24,900. 3) Wainwright decided to write down the motor
2) Prepayments were: van at 25 % per annum on cost.
a. Insurance $780 4) Electricity amounting to $42 had been
b. Rent $4,000 consumed and not yet paid for.
3) Accrued charges were: 5) Payments in advance at 30 June Year 5 were as
a. Electricity $360 follows.
b. Salaries $3,200 a. Rates $280
c. Loan interest $2,600 b. Insurance $20
4) Depreciation to be provided on cost price at the 6) The loan from Driscoll had been obtained on 1
following rates per annum: January Year 5. Interest at 12% per annum had
a. Motor vehicles 20% yet to be paid.
b. Office furniture 10% 7) The bank had advised Wainwright that interest
5) The provision for bad debts is to be adjusted to yet to be charged on the bank overdraft
5% of debtors. amounted to $95.
8) Equipment is valued 43,800 at 30 June.
Required:
Prepare for D Martin: Required:
a) A trading and profit and loss account for the i) Trading and Profit and loss accounts for Tom
year ended 31 December Year 6. Wainwright for the year ended 30 June year
b) A balance sheet as at 31 December Year 6. 5.
ii) Balance sheet at 30 June Year 5.