Thanks in advance Question 2.ICLO2 The following is the Trial Balance of LOP Com
ID: 2392783 • Letter: T
Question
Thanks in advance Question 2.ICLO2 The following is the Trial Balance of LOP Company as of 31 of 31 December 2017 Particulars Dr Amount Cr Amount 600,000 Capital Opening stock Direct expenses Salaries Purchases Rent and rates Sales Interest received Discount received Drawings Advertisement Cash in hand Cash at bank Sundry debtors Buildings Sundry creditors Furniture Vehicles Prepaid Insurance Prepaid salaries $114,000 $58,000 $72,000 $98,000 $10,000 184,000 $12.400 $6.000 $54,400 $22,000 $52,000 $70,000 $80,000 $112,000 $36,000 16,000 50,000 20,000 10,000 $838,400$838 400 - The stock on 31 December 2017 is $501,600. You are required to prepare the Trading and Profit and Loss Account for the year ended 31 December 2017 and the Balance Sheet as on that date for LOP Company
Explanation / Answer
LOP Company
Trading and Profit and Loss Account
For the year ended 31st, December 2017
$ $
Opening Stock
114,000
Sales
184,000
Purchases 98,000
Closing Stock
501,600
Less : Discount 6,000
92,000
Direct Expenses
58,000
Gross Profit (transferred to P&L)
421,600
685,600
685,600
Salaries
72,000
Gross Profit (transferred to P&L)
421,600
Rent and Rates
10,000
Interest Received
12,400
Advertisement
22,000
Net Profit (transferred to Capital)
330,000
434,000
434,000
LOP Company
Balance Sheet
For the year ended 31st, December 2017
ASSETS
$
LIABILITIES
$
Current Assets :
Current Liabilities :
Cash in hand
52,000
Sundry Creditors
36,000
Cash at Bank
70,000
Fixed and Long-Term
Sundry Debtors
80,000
Capital 600,000
Prepaid Insurance
20,000
+ Net Profit 330,000
Prepaid Salaries
10,000
- Drawings 54,400
Closing Stock
501,600
875,600
Fixed Assets :
Buildings
112,000
Furniture
16,000
Vehicles
50,000
911,600
911,600
Opening Stock
114,000
Sales
184,000
Purchases 98,000
Closing Stock
501,600
Less : Discount 6,000
92,000
Direct Expenses
58,000
Gross Profit (transferred to P&L)
421,600
685,600
685,600
Salaries
72,000
Gross Profit (transferred to P&L)
421,600
Rent and Rates
10,000
Interest Received
12,400
Advertisement
22,000
Net Profit (transferred to Capital)
330,000
434,000
434,000
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