PATRIOT ODUNARO BABATUNDE JIMOH (08038454008)
ILLUSTRATION 1
On 1st April 2016, Aseye purchased a business for N5,770 and paid for it the same day. The assets and liabilities of the business on that day were as follows with the one on 31st March 2017.
1st April, 2016 31st March, 2017
N N
Freehold Premises 3,000 3,000
Equipment 300 450
Shop Fittings 900 1,100
Stock-In-Trade 1,400 1,600
Debtors 320 640
Creditors 150 90
Cash at Bank - 390
On 1st April, 2016, Aseye opened a business account into which he paid N350. During the year his drawings were:
Cash N1,100
Goods N140
He also brought in additional cash capital of N700.
You are required to prepare a statement showing the profit or loss of the business for the year ended 31st March 2017 after taking into consideration the following:
(i) Depreciation of: Shop Fittings N100 and Equipment N30
(ii) N80 was written off as bad debts.
INSTRUCTION: Copy the above illustration on your class note against next class.
