Illustration 1 – Single Entry & Incomplete Records
Mr. Okoro did not keep his account on a double entry basis. As a Book- Keeper, you are required to prepare the statement of profit from the following information:
During the year, he estimated the total drawing in cash as N2,580, and part of the stock costing N120 was used for domestic purposes. The following information was agreed upon:
(i) To write off bad debts
(ii) To allow 15% depreciation of furniture and fitting and 20% on Motor Van.
You are required to ascertain the profit or loss for the year ended 31st December, 1998, and balance sheet at that date.
1. Opening Capital
= Total Assets – Liabilities
20,950 – 14,665 =
2. Furniture and Fittings:
1,000 x 15% =
Net book value = 1,000 – 150 =
3. Motor Van:
1,800 x 20% =
Net Book Value = 1,800 – 360 =