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WAEC 2020 The following transactions were extracted from the books of Odis Enterprises ...

WAEC 2020

The following transactions were extracted from the books of Odis Enterprises for the year ended 31st December 2018: 0) cash received from trade debtors N100,000
i. cash paid to suppliers N72,000
ii. expenses paid during the year were: rent- N2,500, general expenses N1,800
iv. cash of N5200 was withdrawn by the proprietor for personal use.
v. fixed assets valued at N8,000 on 31st December 2017 were to be depreciated at 10 per annum
Additional information:
31st December 2017 31st December 2018
Trade debtors 11,000 13,000
Trade creditors 4,000 6,500
Rent owing - 500
Cash 12,100 30,000
Stock 15,900 17,000
You are required to prepare:
(a) Statement of Affairs as at 1st January 2018
(b) Cashbook
(c) Trading Profit and Loss Account for the year ended 31st December 2018.
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
    Correct Answer: Option
    Explanation:
    Financial accounting practice Odis enterprise
    (a) statement of affairs as at 1st January 2018
    Ncapital 43,000Creditors 4,000 47,000 Nfixed asset 8,000stock 15,900Debtors 11,000cash 12,100 39,000 47,000



    (b) Cashbook
    NBalance b/f 12,100Receipts debtors 4,000 112,000Balance b/d 30,600nm Nsuppliers 72,000Rent 2,500General exp 1,800Drawings 5,200Balance c/d 30,000 112,000



    (c) Trading, profit, and loss account for the year ended 31st December 2018

    NOpening stock 5,900Purchase(74,500+4,000+6,500) 84,500Cost of goods available for sale 90,400Less: closing stock 17,000Cost of goods sold 73,400Gross profit c/d 28,800 102,200Rent (2,500+500) 3,000General expenses 1,800Dep.of fixd assets(10%x8000) 800 Net profit 23,200 28,800 Nsales (100,000+13,200-11,000) 102,200 102,200Gross profit b/d 28,800 28,800




    (a) workings for total debtor account
    N N
    Bal b/d 11,000 cash 100,000
    sales 102,200 Bal b/d 13,200
    113,200nm 113,200nm
    13,200nm
    (b) Total creditors account
    N N
    cash 72,000 Bal b/d 4,000
    Bal c/d 6,500 purchase 74,500nm
    78,500nm 78,500nm
    6500nm

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