The following information has been extract from the books of A. Rock, a Sole Proprietor for the year ended 31/12/1988

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The following information has been extract from the books of A. Rock, a Sole Proprietor for the year ended 31/12/1988 Trial Balance of A Rock as at 31st December, 1988. 86,000 Capital 1 Jan. 60,000 Stock ! Jan 120,000 Buildings 10,000 Fixtures and Fitting Motor Vehicle 30,000 15,000 Debtors and Creditors 40,000 Advertising 1.000 1,000 Insurance 02 A Salaries Provision for Bad debt 500 Date Rates 1,000 Discounts 2,000 1,000 Returns 200 200 Purchases 80,000 150,000 Additional information: off as bad debt Provision gfor Bad debts is 5% (0) Electricity bill outstanding N500 (d) Insurance prepaid 200 Stock at 31st December N 70,000 (1) One quarter of Electricity relates to Trading (8) Depreciation on fixtures and Fittings is 5% and Motor vehicle 10% You are required to prepare: ) A Balance Sheet as at that date.. (Source: WAEC GCEO'LEVEL Nov. 1990 Comment Comments Bookmark 6. Cross-reference Links Link Picture Tools Format 45,000 Help View M Sales Electricity Bank General Expenses Bank

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Trading and profit and loss account for the year ending 31 December 1988 Particular Amount dr Particular Amount cr To Opening stock 60,000 By sales 150,000 To purchase 80,000 By return (Purchase) 200 To return è (Sales) 200 By closing Stock 70,000 To electricity 500 To Gross Profit C/d 79,500 220,200 220,200 To Depreciation Fixture& fitting5%=500 Motor vehicle10%=3000 3,500 By Gross Profit B/d 79500 To advertising 1,000 By discount 1000 To insurance =1000 Less prepaid =200 800 To salary 45,000 To bad debts 1000 To rates 1,000 To discount 2000 To electricity =2000 Less trading account protion=500 Add outstanding bill=500 2000 To general expense 2000 To provisions bad Debtors 10%(15000-1000)=1400 Less old provisions =500 900 To net profit C/D 21300 80,500 80,500 Balance sheet as on 31 December 1988 Liabilities amount Assets amount Capital 86000 Add net profit 21300 107,300 Building 120,000 Creditors 40,000 fixtures & fitting 10000 Less dep 500 9,500 Bank loan 100,000 motor vehicle 30,000 Less dep 3000 27,000 Electricity bill outstanding 500 prepaid insurance 200 Closing stock 70,000 Bank 8500 Debtors(NOTES) 12,600 247,800 247,800 Notes: Calculation of Debtors amount for balance sheet Debtors =15,000 less bad dabt =1000 =14000 less 10% provision =1400 net Debtors =12,600

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The following information has been extract from the books of A

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Particular	Amount dr	Particular	Amount cr
To Opening stock	60,000	By sales	150,000
To purchase	80,000	By return (Purchase)	200
To return è (Sales)	200	By closing Stock	70,000
To electricity	500
To Gross Profit C/d	79,500
	220,200		220,200
To Depreciation Fixture& fitting5%=500 Motor vehicle10%=3000	3,500	By Gross Profit B/d	79500
To advertising	1,000	By discount	1000
To insurance =1000 Less prepaid =200	800
To salary	45,000
To bad debts	1000
To rates	1,000
To discount	2000
To electricity =2000 Less trading account protion=500 Add outstanding bill=500	2000
To general expense	2000
To provisions bad Debtors 10%(15000-1000)=1400 Less old provisions =500	900
To net profit C/D	21300
	80,500		80,500

Liabilities	amount	Assets	amount
Capital 86000 Add net profit 21300	107,300	Building	120,000
Creditors	40,000	fixtures & fitting 10000 Less dep 500	9,500
Bank loan	100,000	motor vehicle 30,000 Less dep 3000	27,000
Electricity bill outstanding	500	prepaid insurance	200
		Closing stock	70,000
		Bank	8500
		Debtors(NOTES)	12,600
	247,800		247,800