The following trial balance was extracted from the books of Segun Enterprises as at 31st...

The following trial balance was extracted from the books of Segun Enterprises as at 31st December, 2007.
Dr cr
Stock 34,000
Sales 384,680
Purchases 334,360
Carriage inwards 840
Carriage outwards 3,150
Returns outwards 1,280
Wages and salaries 24,480
Rent 6,030
Rates 2,320
Communication expenses 1,200
Telephone 80
Commission payable 400
Insurance 800
Sundry expenses 6,100
Buildings 40,640
Debtors 28,000
Creditors 36,000
Fixtures 5,700
Cash at bank 5,950
Cash in hand 2,240
Loan from Daudu 20,000
Drawings 13,240
Capital 67,250
Interest received 320
509,530 509,53

Additional information:
1. Stock at close was #64,000
2. Depreciation at cost: Fixtures 10%
3. Bad debt written off #300
4. Provision for discount on debtors 5%. Create a bad debt provision of 2%
5. Telephone owing #20
6. Sundry expenses in advance #30
7. Interest owing #40
8. The owner withdrew goods worth #500
You are required to prepare:
Trading and profit and loss account for the year ended 31st December, 2007 and Balance Sheet as at that date.?

3 Answers Available
Asked by chioma on 9th June, 2020