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Mr. Adongo has been operating for a number of years as a merchant. The following list...

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legendgirl | eNotes Newbie

Posted October 27, 2013 at 4:18 AM via web

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Mr. Adongo has been operating for a number of years as a merchant. The following list of
balances has been extracted from his ledger on April 30 2017, the end of his most recent
financial year.
                                          $
Capital                             83, 887
Sales                              259,870
Creditors                           19,840
Returns out                        13,407
Provision for bad debt              512
Discounts allowed                  2,306
Discounts received                 1,750
Purchases                         135,680
Returns inwards                     5,624
Carriage outwards                   4,562
Drawings                             18,440
Carriage inwards                   11,830
Rent, Rates, and Insurance    25,973
Heating and Lighting                          11,010
Postage, Stationery andTelephone        2,410

Advertising                                         5,980
Salaries and wages                             38,521
Bad debts                                            2,008
Cash 534
Bank 4,440
Stock as at May 1 2016 15,654
Debtors 24,500
Fixtures and Fittings - at cost 120,740
Provision for depreciation on fixtures and fittings - as at April 30 2017 63,020
Depreciation 12,074
The following information was available at April 30 2017:
a) Stock at the close of business was valued at $17, 750
b) Insurance has been prepaid by $1,120
c) Heading and lighting is accrued by $1,360
d) Rates have been prepaid by $5,435
e) The provision for bad debts is to be adjusted so that it 3% of debtors
Required
Prepare Mr.Adongo's Profit and Loss Account for the year ended April 30 2017 and
a Balance Sheet as at that date.

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