3.1. Preparation of financial statements
A subsection of Accounting, 9706, through 3. Financial accounting (A Level)
Listing 10 of 678 questions
The following trial balance was extracted from the Mighty Wholesale Company’s books at 30 April 2010. Dr $000 Cr $000 Revenue (Sales) Ordinary goods purchased (Purchases) Property (Buildings) at cost Warehouse fittings at cost Inventory (Stock) at 1 May 2009 Capital 12% loan repayable 2015 Wages Provisions for depreciation at 1 May 2009: Property (Buildings) Warehouse fittings Trade receivables (Debtors) Trade payables (Creditors) Cash and cash equivalents (Bank) Distribution expenses Business rates Insurance Advertising Drawings Loan interest Additional information: Inventory at 30 April 2010 cost $230 000. This includes inventory costing $20 000 which has a net realisable value of $9000. Warehouse fittings were sold during the year. The proceeds of $10 000 were debited to the bank account and credited to the property at cost account. No other entry has been made regarding this transaction. The fittings sold had cost $52 000 and the total depreciation charged to them by 1 May 2009 amounted to $41 000. No depreciation is charged in the year of disposal. Depreciation is to be provided for as follows: Property 2% on cost Warehouse fittings 25% reducing balance Other payables at 30 April 2010 are: Wages $12 000 Distribution expenses $5 000 Loan interest ? (The loan was taken out in 2005) Other receivable at 30 April 2010 is: Insurance $2000 REQUIRED Prepare the income statement (trading and profit and loss account) for the year ended 30 April 2010. Prepare the balance sheet at 30 April 2010.
9706_s10_qp_21
THEORY
2010
Paper 2, Variant 1
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