Problem -
Dale has been in business for some years. The following is his trial balances at October 31, 2015.
|
|
DR $
|
CR $
|
|
Bank
|
700
|
|
|
Capital
|
|
85,000
|
|
Depreciation (at 1 Nov. 2014):
|
|
|
|
Office Equipment
|
|
14,000
|
|
Vehicles
|
|
4,000
|
|
Drawings
|
12,300
|
|
|
Heating and Lighting
|
3,000
|
|
|
Office Expenses
|
27,000
|
|
|
Office Equipment (at cost)
|
35,000
|
|
|
Business Permit or rates (license)
|
12,000
|
|
|
Purchases (goods)
|
240,000
|
|
|
Sales
|
|
350,000
|
|
Stock (Nov. 1, 2014)
|
20,000
|
|
|
Trade Creditors
|
|
21,000
|
|
Trade Debtors
|
61,000
|
|
|
Vehicle (at cost)
|
16,000
|
|
|
Wages and Salaries
|
47,000
|
|
|
|
$474,000
|
$474,000
|
Additional information not taken into account when compiling the above trial balance is as follows:
1. Stock at Oct. 31, 2015: $26,000
2. Amount owing for electricity at Oct. 31, 2015: $1,500
3. AS of October 31, 2015, $2,000 had been paid in advance for business permit (license) or rates.
4. Depreciation is to be charged on the office equipment for the year to Oct. 31, 2015 at the rate of 20% on cost and on the vehicles at the rate of 25% on cost.
5. $11,500 of receivables cannot be collected.
Requirement -
Prepare Dale's Trading Account, Profit and Loss Account for the year Oct. 31, 2015 and a Balance Sheet as of that date.