Menu
- 14 Marks
Question
The following balances were extracted from the books of Omoba Enterprises as at 31 December 2013:
| Details | N’000 |
|---|---|
| Accumulated depreciation | 85,000 |
| Administrative expenses | 775,000 |
| Accounts payables | 585,000 |
| Subscription | 15,000 |
| Rent and rates | 130,000 |
| Accounts receivables | 475,000 |
| Postage and stationery | 125,000 |
| Newspapers & periodicals | 40,000 |
| Utility | 35,000 |
| Allowances for Bad debt | 85,000 |
| Property, plant and equipment | 925,000 |
| Retained earnings | 575,000 |
| Audit fees | 85,000 |
| Revenue | 2,500,000 |
| Cost of sales | 800,000 |
| Other income | 82,000 |
| Cash and bank balances | 882,000 |
| Capital | 375,000 |
Required:
i. Use the information above to extract a trial balance of Omoba Enterprises as at 31 December, 2013. (12 Marks)
ii. Use the information below to recompute the entity’s capital for the period under review:
- Drawings: N250,000
- Profit for the period: N315,000
Answer
(i) Trial Balance of Omoba Enterprises as at 31 December 2013:
| Details | Debit (N’000) | Credit (N’000) |
|---|---|---|
| Accumulated depreciation | 85,000 | |
| Administrative expenses | 775,000 | |
| Accounts payables | 585,000 | |
| Subscription | 15,000 | |
| Rent and rates | 130,000 | |
| Accounts receivables | 475,000 | |
| Postage and stationery | 125,000 | |
| Newspapers & periodicals | 40,000 | |
| Utility | 35,000 | |
| Allowances for Bad debt | 85,000 | |
| Property, plant, and equipment | 925,000 | |
| Retained earnings | 575,000 | |
| Audit fees | 85,000 | |
| Revenue | 2,500,000 | |
| Cost of sales | 800,000 | |
| Other income | 82,000 | |
| Cash and bank balances | 882,000 | |
| Capital | 375,000 | |
| Total | 4,287,000 | 4,287,000 |
(ii) Recomputed Capital for Omoba Enterprises:
- Tags: Adjustments, Capital, Financial Statements, Trial Balance
- Level: Level 1
- Topic: Trial Balance: Usefulness and Limitations
- Series: MAY 2015
- Uploader: Joseph