4B
The following balances appeared in the books of T Lukama and Son's at 31 December
2020.
Capital
Inventory 1/1/2020
Purchases
Sales
Discount allowed
Returns inward
Returns outwards
Carriage inwards
Carriage outwards
Electricity
Insurance
к
114 312.00
21 316.00
270 392.00
792 206.00
6 000.00
668.00
1228.00
394.00
502.00
11 456.00
1 600.00
950.00
2800.00
166 518.00
Stationery
Rent received
Salaries and wages
Receivables
55 200.00
Payables
25 922.00
Provision for doubtful debts 1/01/2020
Premises
400 000.00
Equipments
10 000.00
Furniture
12 000.00
10% loan (repayable in 10 years)
20 000.00
Provision for depreciation
Premises
Equipment
Furniture
Cash in hand
Drawings
The following adjustments are to be taken into consideration:
1
2
3
Inventory at 31 December was valued at K18 000.00.
Interest on loan had not yet been paid.
8 000.00
4 000.00
9 000.00
14 712.00
10 000.00
At 31 December the Provision for Doubtful Debts is to be equal to 10% of
receivables at that date and 5% should be the provision for discount allowed on
adjusted figure of receivables.
T Lukama withdrew goods valued at k4 000.00 selling price, no entry was made in
the books of accounts.
Principles of Accounts/110/2
2022
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