Dana runs a recruitment agency from a freehold property which he had converted to office accommodation when he bought it four years ago. Dana’s trial balance for the year to 31st December 2019 was as follows: Trial Balance Dr (£) Cr (£) Cars at cost 56,000 Accumulated depreciation of cars as at 1st January 2019 25,040 Freehold building at cost 215,000 Accumulated depreciation of freehold building as at 1st January 2019 43,000 Debtors 100,000 Bank / cash 20,714 Creditors 68,840 Provision for doubtful debts as at 1st January 2019 6,000 Long term loan (at 10% per annum) 100,000 Capital as at 1st January 2019 118,340 Drawings 8,314 Fee income 152,332 Administrative expenses 21,544 Loan interest (all relating to long term loan) 5,000 Bookkeeping and invoicing expenses 5,600 Insurance 58,400 Salaries and wages expenses 51,608 Entertainment 2,000 Electricity 6,000 Travelling expenses 4,800 Totals 534,266 534,266 Additional information” “Insurance prepaid as at 31st December 2019 was £191.” “Electricity owing as at 31st December 2019 were £390.” “The provision for doubtful debts should be adjusted to 4% of debtors.” “Depreciation is to be calculated as set out below:” “i) Depreciation is calculated at 25% on the reducing balance basis for the cars. ii) Depreciation is calculated on the straight-line basis at 5% of cost for the freehold building.” “Required” “Prepare Dana’s income statement for the year ending 31st December 2019 and a statement of financial position as at 31st December 2019. show detailed workings.
https://helpmewriteessay.xyz/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg 0 0 First class essays https://helpmewriteessay.xyz/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg First class essays2022-04-21 02:39:582022-04-21 02:39:58Dana runs a recruitment agency from a freehold property which he had converted to office accommodation when he bought it four years ago. Dana's trial