By S. Hall, N. Skene Smith
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Additional resources for Accounting Principles and Practice. The Commonwealth and International Library: Commerce, Economics and...
Proved to be bad. On September 30th, 1962, the directors decided to maintain the provisions existing against the debts of S. Jones and A. Brown and to create provisions as follows: £. s. d. A. K. James 21. 9. 4. B . L . Stanley 16. 10. 5. Show the entries that these facts will require in the Company's Nominal Ledger in the year ended September 30th, 1962. ).
Dr. Trading and Profit ά Loss Account for the Year ended 21st December, 1962 £ To Cost of Goods Sold: Stock, 1st January Purchases £ By Sales Cr. £ 12,420 2,100 6,430 8,530 Less Stock, 31st Dec. „ Gross Profit carried down 1,590 6,940 5,480 £12,420 To „ „ „ „ „ Rent & Rates Lighting & Heating Salaries of Assistants Discounts Allowed Sundries Net Profit 600 By Gross Profit 180 brought down 1,200 120 80 3,300 £5,480 £12,420 5,480 £5,480 Is this a superior form of presenting the information? We may well have doubts.
4 Rent for December Quarter Apl. 16 Rent for March Quarter June July Sept. Oct. 29 5 16 8 Dr, 1962 Jan. 1 To 4 16 29 5 16 „ Oct. 8 Dec. 31 „ „ Apl. June July Sept. >» „ „ „ Cr. Rent, Rates and Insurance Account £ 1962 £ By Rent Accrued b/d 60 Jan. Amounts Prepaid b/d 22 Rates 24 Insurance 60 Cash—Rent Amounts Dec. 31 66 »» »> Prepaid c/f „ Insurance 48 Rates 24 66 „ Rent Insurance 24 „ Rates 96 (1962/63) „ Rent 66 „ P. & L. A/c 406 66 Rent Accrued c/f £514 £514 37 FINAL ACCOUNTS 1963 Jan. £ 1 To Amounts prepaid b/f Rates 24 Insurance 24 1963 Jan.