revision help needed urgently

freeze4real

Hello guys I am just doing a bit of revision for my accounting exam on Monday and I am hoping that some of the accounting geniuses on boards could point me in the right direction.

I am meant to prepare a trading profit and loss account from a table and some information were added below.

The following information is also available:
A purchase of stationery amounting to €600 has been debited to the vehicle expense account.
Mr. Potter took for personal use, postage stamps costing €100 which were purchased by the business and
included in postage and stationery.
The rent is €500 per month but it has only been paid to the end of October.
31 December was a Wednesday. The firm pays the wages on a Friday. The wages outstanding for the three
days amounts to €250.
The last rates payment was for the six months ending 31 March 2008 and amounted to €1,500.
All the firm’s insurance premiums are paid for a year in advance on 30 June; the last payment was for €800.
The firm lets a shed for part of the year to a local street trader to store his barrow. The charge for rent is €10
per week. As at 31 December the trader owed the firm €100.
The motor van was purchased during the year. Mr. Potter’s accountant has told him that a full year’s
depreciation should be charged on it, at a rate of 20%, on a straight line basic.




I have the trading profit and loss account half done but I'm missing some details.

I have already added depreciation from the notes what else from the notes am i meant to add to it.


Thanks.

tenchi-fan

No, we're not going to do your homework for you!

Per the charter: "The Primary function of this forum is not educational ... Take such discussions/comments to the education forum."

freeze4real

tenchi-fan wrote: »

No, we're not going to do your homework for you!

Per the charter: "The Primary function of this forum is not educational ... Take such discussions/comments to the education forum."

This isnt homework!

I have Accounting exam on Monday and I am doing past exam papers. I could send you the link to your mailbox along with my timetable.

smcgiff

Op,

Starting with each line what do you think the treatment should be?

freeze4real

smcgiff wrote: »

Op,

Starting with each line what do you think the treatment should be?

I need to correct to the amount debited to the vechicle account.

The €100 should be added expenses.

The rent for the remaining months of movements and December hasn't been paid so it's an oustanding debt.

Wages are also outstanding.

The trader's debt will be in the balance sheet.

Depreciation would be added to the profit and loss account.

Am I right?

smcgiff

freeze4real wrote: »

I need to correct to the amount debited to the vechicle account.

The €100 should be added expenses.

Are they not currently in postage and stationery?

freeze4real wrote: »

I need to correct to the amount debited to the vechicle account.

Correct - do you know what the Dr and Cr would be to correct this?

freeze4real wrote: »

The rent for the remaining months of movements and December hasn't been paid so it's an oustanding debt.

Correct you'll need to accrue the months not paid.

freeze4real wrote: »

Wages are also outstanding.

Correct you'll need to accrue for wages

freeze4real wrote: »

The trader's debt will be in the balance sheet.

I imagine the question is asking you to account for the traders debt. Cr P&L Dr Balance Sheet

freeze4real wrote: »

Depreciation would be added to the profit and loss account.

Correct although you'll need to know the cost price of the Van.

freeze4real wrote: »

Am I right?

Pretty much so far

freeze4real

Thanks for the help. It seems I'll be busy tonight.

ontour

The €100 stamps are drawing so take them out of postage