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The trial balance of BCB Limited as at 31 December 2020 appeared as follows: Dr Cr Share capital 120,000 Sales revenue 617,100 Purchases 223,500 You are provided with the following information. Returns inwards 4,800 1. 5,500 The provision for doubtful debts is to be adjusted Returns outwards Provision for doubtful debts 50.as to represent 8% of trade receivables. 2,000 2. Bad Debt of £1,200 to be written off. Bank 45,000 Inventory 46,000 3. Equipment's are to be depreciated by 20% using Motor Vehicles at Cost 75,000 the straight-line method. Motor Vehicles - 27,000 4. Motor vehicles are to be depreciated by 20% Accumulated Depreciation Equipment at cost Equipment - Accumulated Depreciation Trade Payables Trade Receivables using the reducing balance method. 290,500 36,200 5. Outstanding bills for the period: Electricity - £725 6. 24,000 Insurance has been paid up until 31 March 2021. 36,000 7. The closing inventory was valued at £39,000. 10% loan 40,000 10% loan interest 2,000 Required: prepare for the year ended 31 December 2020 - using the above information: Wages and salaries Telephone Light & Heat 91,500 1,800 26,000 Insurance 15,000 A Statement of Financial Position Repairs & maintenance Advertising Bad debts expense 7,400 4,000 3,300 871,800 871,800

The trial balance of BCB Limited as at 31 December 2020 appeared as follows: Dr Cr Share capital 120,000 Sales revenue 617,100 Purchases 223,500 You are provided with the following information. Returns inwards 4,800 1. 5,500 The provision for doubtful debts is to be adjusted Returns outwards Provision for doubtful debts 50.as to represent 8% of trade receivables. 2,000 2. Bad Debt of £1,200 to be written off. Bank 45,000 Inventory 46,000 3. Equipment's are to be depreciated by 20% using Motor Vehicles at Cost 75,000 the straight-line method. Motor Vehicles - 27,000 4. Motor vehicles are to be depreciated by 20% Accumulated Depreciation Equipment at cost Equipment - Accumulated Depreciation Trade Payables Trade Receivables using the reducing balance method. 290,500 36,200 5. Outstanding bills for the period: Electricity - £725 6. 24,000 Insurance has been paid up until 31 March 2021. 36,000 7. The closing inventory was valued at £39,000. 10% loan 40,000 10% loan interest 2,000 Required: prepare for the year ended 31 December 2020 - using the above information: Wages and salaries Telephone Light & Heat 91,500 1,800 26,000 Insurance 15,000 A Statement of Financial Position Repairs & maintenance Advertising Bad debts expense 7,400 4,000 3,300 871,800 871,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The trial balance of BCB Limited as at 31 December 2020 appeared as follows: Dr Cr Share capital 120,000 617,100 Sales revenue Purchases 223,500 You are provided with the following information. Returns inwards 4,800 Returns outwards Provision for doubtful 1. 5,500 The provision for doubtful debts is to be adjusted 50.as to represent 8% of trade receivables. 2,000 debts 2. Bad Debt of £1,200 to be written off. Bank 45,000 Inventory 46,000 3. Equipment's are to be depreciated by 20% using Motor Vehicles at Cost 75,000 the straight-line method. Motor Vehicles- Accumulated Depreciation 27,000 4. Motor vehicles are to be depreciated by 20% using the reducing balance method. Equipment at cost Equipment - Accumulated Depreciation Trade Payables 290,500 36,200 5. Outstanding bills for the period: Electricity - £725 6. 24,000 Insurance has been paid up until 31 March 2021. Trade Receivables 36,000 7. The closing inventory was valued at £39,000. 10% loan 40,000 10% loan interest 2,000 91,500 Required: prepare for the year ended 31 December 2020 - using the above information: Wages and salaries Telephone Light & Heat 1,800 26,000 Insurance 15,000 A Statement of Financial Position Repairs & maintenance Advertising Bad debts expense 7,400 4,000 3,300 871,800 871,800
Transcribed Image Text:The trial balance of BCB Limited as at 31 December 2020 appeared as follows: Dr Cr Share capital 120,000 617,100 Sales revenue Purchases 223,500 You are provided with the following information. Returns inwards 4,800 Returns outwards Provision for doubtful 1. 5,500 The provision for doubtful debts is to be adjusted 50.as to represent 8% of trade receivables. 2,000 debts 2. Bad Debt of £1,200 to be written off. Bank 45,000 Inventory 46,000 3. Equipment's are to be depreciated by 20% using Motor Vehicles at Cost 75,000 the straight-line method. Motor Vehicles- Accumulated Depreciation 27,000 4. Motor vehicles are to be depreciated by 20% using the reducing balance method. Equipment at cost Equipment - Accumulated Depreciation Trade Payables 290,500 36,200 5. Outstanding bills for the period: Electricity - £725 6. 24,000 Insurance has been paid up until 31 March 2021. Trade Receivables 36,000 7. The closing inventory was valued at £39,000. 10% loan 40,000 10% loan interest 2,000 91,500 Required: prepare for the year ended 31 December 2020 - using the above information: Wages and salaries Telephone Light & Heat 1,800 26,000 Insurance 15,000 A Statement of Financial Position Repairs & maintenance Advertising Bad debts expense 7,400 4,000 3,300 871,800 871,800
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