Math  /  Data & Statistics

QuestionEXERCISE ONE The following trial balance was extracted from the books of Hamusonde , at the close of the business for the year ended 31st December 2023 \begin{tabular}{|c|c|c|} \hline & Dr & Cr \\ \hline & K & K \\ \hline Sales & & 157,165 \\ \hline Purchases & 92,800 & \\ \hline Cash at bank & 4,100 & \\ \hline Cash in hand & 324 & \\ \hline Capital account 1 January 2021 & & 11,400 \\ \hline Drawings & 17,100 & \\ \hline Office furniture & 2,900 & \\ \hline Rent & 3,400 & \\ \hline Salaries and wages & 31,400 & \\ \hline Discounts & 820 & 160 \\ \hline Receivables & 12,316 & \\ \hline Payables & 5,245 & \\ \hline Inventory 1 January 2021 & 4,120 & \\ \hline Provision for doubtful debts 1 January 2022 & & 405 \\ \hline Delivery van & 3,750 & \\ \hline Van running costs & 615 & \\ \hline Bad debts written off & 730 & - \\ \hline & 174,375 & 174,375 \\ \hline \end{tabular}
Notes a) Inventory 31st December 2023 K2,400. b) Salaries and wages accrued as at 31st December K340. c) Rent prepaid at 31st December 2023 K230. d) Van running costs owing at 31st December 2023 K72. e) Increase the provision for doubtful debts by K91. f) Provide for depreciation as follows: Office furniture K380, Delivery van K1,250.
Required:

Studdy Solution
Prepare the Profit and Loss Statement for the year ended 31st December 2023.
\begin{tabular}{|c|c|c|} \hline & K & K \\ \hline \textbf{Revenue} & & 157,165 \\ \hline \textbf{Cost of Sales} & & \\ \hline Opening Inventory & 4,120 & \\ \hline Purchases & 92,800 & \\ \hline Closing Inventory & (2,400) & \\ \hline & & 94,520 \\ \hline \textbf{Gross Profit} & & 62,645 \\ \hline \textbf{Expenses} & & \\ \hline Salaries and Wages & 31,740 & \\ \hline Rent & 3,170 & \\ \hline Discounts & (660) & \\ \hline Van Running Costs & 687 & \\ \hline Bad Debts Written Off & 730 & \\ \hline Provision for Doubtful Debts & 91 & \\ \hline Depreciation - Office Furniture & 380 & \\ \hline Depreciation - Delivery Van & 1,250 & \\ \hline & & 37,388 \\ \hline \textbf{Net Profit} & & 25,257 \\ \hline \end{tabular}

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