CommentAuthordarenatto CommentTime2 days ago edit
can plz someone help me with this tough one?its really driving me nuts .plz help asap.atleast prepare an adjusted trial balance n i will do the rest myself.plzzzzzzz


Paul n Barry r in a business partnership.their trial balance as at 31 may 2006 is given below:
$
Sales revenue 568,000
Returns inwards 5100
Purchases 375,600
Rent 18,760
Selling expenses 55,600
General expenses 3680
Allowance for receivables at 1jun 2005 2100
Bank 13980
Wages 18000
Trade payables 41300
Current accounts at 1june: paul 3570 barry 2190
motor vehicles,at cost 30000
fixtures and fittings,at cost 4000
accumulated depreciation at 1 june 2005:
-motor vehicles 9000
-fixtures n fittings 7000
insurance 1540
inventory at 1 june 2005 39200
motor vehicle expenses 9300
trade receivables 47500
discounts allowed 8900
drawings-paul 16000 drawings-barry 11000
capital accounts at 1 june 2005-paul 20000
-barry 15000
---------
668160
the following additional information as at 31 may 2006 is available:
1:inventory was valued at $32000
2:during the year barry has taken some goods for his own use to the value of 450,but this has not yet been recorded in the accounting records.
3:interest on drawings for the year were $420 for paul n $180 for barry
4:paul is entitled to a salary of $15000 per annum before profits r shared
5:insurance of $900 has been paid in advance
6:depreciation is to b provided as follows:
-motor vehicles at 20% using the reducing balance method
-fixtures and fittings at 15% using the straight line method
7:there r outstanding general expenses of $600
8:debts of $600 r to be written off and the allowance for receivables is to b adjusted to the equivalent of 5%of the remaining trade receivables,based on past experience
9:paul n barry share profits profits n losses in the ratio 2:1 respectively.


Prepare:
1:The income statement n appropriation account for the year ended 31 may 2006
2:The partners current accounts for the year ended 31 may 2006 n
The balance sheet. As at 31 may 2006.