The following transactions were extracted from the books of Odis Enterprises for the year ended 31st December 2018: 0) cash received from trade debtors N100,000 i. cash paid to suppliers N72,000 ii. expenses paid during the year were: rent- N2,500, general expenses N1,800 iv. cash of N5200 was withdrawn by the proprietor for personal use. v. fixed assets valued at N8,000 on 31st December 2017 were to be depreciated at 10 per annum Additional information: 31st December 2017 31st December 2018 Trade debtors 11,000 13,000 Trade creditors 4,000 6,500 Rent owing - 500 Cash 12,100 30,000 Stock 15,900 17,000 You are required to prepare: (a) Statement of Affairs as at 1st January 2018 (b) Cashbook (c) Trading Profit and Loss Account for the year ended 31st December 2018.
Explanation
Financial accounting practice Odis enterprise (a) statement of affairs as at 1st January 2018
(c) Trading, profit, and loss account for the year ended 31st December 2018
NOpening stock 5,900Purchase(74,500+4,000+6,500) 84,500Cost of goods available for sale 90,400Less: closing stock 17,000Cost of goods sold 73,400Gross profit c/d 28,800 102,200Rent (2,500+500) 3,000General expenses 1,800Dep.of fixd assets(10%x8000) 800 Net profit 23,200 28,800
(a) workings for total debtor account N N Bal b/d 11,000 cash 100,000 sales 102,200 Bal b/d 13,200 113,200nm113,200nm 13,200nm (b) Total creditors account N N cash 72,000 Bal b/d 4,000 Bal c/d 6,500 purchase 74,500nm 78,500nm78,500nm 6500nm
