Answer to Question #107148 in Accounting for Devika

Question

The following analysis of the cash transactions for the year was gathered from the incomplete records of N. Carroll, a merchant:Receipts:
Received from sundry debtors
300 000
Additional investment of capital
45 000
Payments:
Payments to sundry creditors
185 000
General expenses
50 000
Wages
77 500
Drawings
95 000
1 Jan.
31 Dec.
Balances:
R
R
Bank overdraft
37 000
–
Debtors
265 000
440 000
Creditors
75 000
97 500
Stock
85 000
95 000
Plant and machinery
100 000
100 000
Furniture and fittings
7 000
7 000Additional information:
Provision must be made for:
1. Depreciation:
10% p.a. on plant and machinery (straight-line)
5% p.a. on furniture and fittings (straight-line)
2. Bad debts provision:
5% p.a. on sundry debtors
Required
(a) Draw up the income statement of N. Carroll for the year ended 31 December 2000.
(b) Prepare the balance sheet of N. Carroll at 31 December 2000.

Answer 1

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