Dauda, a retailer, does not keep proper books of account. The following were balances in his books on January 2013. Premises 70,000 Equipment 8,200 Vehicles...
Question 1 Report
Dauda, a retailer, does not keep proper books of account. The following were balances in his books on January 2013.
| Premises | 70,000 |
| Equipment | 8,200 |
| Vehicles | 5,100 |
| Inventory | 9,500 |
| Accounts receivable | 150 |
| Bank | 1400 |
The summary of his bank statement for the twelve months period from 1st January 2013 to 31st December 2013 is as follows:
| Money paid to the bank: | 96,500 |
| Shop takings | 1,400 |
| Received from debtors | 8,000 |
| Payments made by cheque | |
| Inventory purchased | 70,500 |
| Delivery Van | 6,200 |
| Maintenance of vehicle | 1,020 |
| Electricity and water | 940 |
| Store boys' wages | 5,260 |
| Miscellaneous expenses | 962 |
Additional information;
i. Dauda paid all shop takings for the year into the bank apart from monthly drawings of D500 and miscellaneous expenses of D408.
ii. He was owing, D7, 600 to supplies for inventory bought.
iii. The accounts receivable is to be treated as bad debts.
iv. Inventory was valued at D13,620
v. Depreciation for the year was calculated as D720 for equipment and D1,000 for vehicles.
You are required to prepare:
(a) Statement of Affairs as at 01/01/13
(b) Income Statement for the year ended 31st December 2013
Download The App On Google Playstore
Everything you need to excel in JAMB, WAEC & NECO
