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IX - Intl-Final Account-Ruby - (1)

The document presents the trial balance of Ruby Biro's stationary shop as of December 31, 2018, detailing various financial figures including expenses, assets, and liabilities. It includes additional information necessary for preparing the trading and profit and loss account and the balance sheet, such as inventory valuation, unpaid wages, and depreciation methods. The required outputs are the trading and profit and loss account for the year ended 2018 and the balance sheet showing net current assets.

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arafatrafan267
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37 views1 page

IX - Intl-Final Account-Ruby - (1)

The document presents the trial balance of Ruby Biro's stationary shop as of December 31, 2018, detailing various financial figures including expenses, assets, and liabilities. It includes additional information necessary for preparing the trading and profit and loss account and the balance sheet, such as inventory valuation, unpaid wages, and depreciation methods. The required outputs are the trading and profit and loss account for the year ended 2018 and the balance sheet showing net current assets.

Uploaded by

arafatrafan267
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Final Account

Q.1. Ruby Biro runs a stationary shop and makes deliveries to her customers. Here is her trial
balance at 31 December 2018.

Dr Cr
₤ ₤
Administration expenses 5273
Advertising 60
Bank 3700
Bank loan 5000
Capital 60000
Carriage inwards 717
Carriage outwards 2746
Cash 500
Acct. Payable 4610
Acct. Receivable 3915
Drawings 11600
Driver’s wages 7000
Insurances 1200
Motor expenses 3925
Delivery van at cost 10000
Provision for depreciation on delivery van at 01 January 2018 7500
Provision for depreciation on shop fixtures at 01 January 2018 3200
Purchases 120600
Rent and rates 13800
Returns inwards 900
Returns outwards 1686
Sales 144710
Shop fixtures at cost 4520
Inventory at 01 January 2018 36250
226706 226706
Additional information:
 Inventory on 31 December 2018 was valued at ₤ 35700.
 200 was owing to the driver in unpaid wages.
 Rent of ₤ 650 had been paid for the following year.
 The bank loan was taken out on 01 July 2018. Annual interest is 10% of the full amount of the
loan. Interest for the current year has not yet been accounted for.
 Depreciation is to be charged on the delivery van and on the shop fixtures at 40% on the
diminishing balance method.
Required:
From the information provided, prepare the:
(a) Trading and profit and loss account for the year ended 31 December 2018.
(b) Balance sheet at 31 December 2018, showing the net current assets (working capital).

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