Profit And Loss Appropriation Account: - Amount Written Off - SS2 Accounting Lesson Note
Question:
The following transactions were gotten from the company account of ABC TECH for February 2023. You are required to prepare the profit and loss appropriation account
|
Date |
Transaction Description
Amount (₦)
February 1
Amount written off for bad debt
10,000
February 3
Salary expense for February
50,000
February 5
Rent expense for February
20,000
February 6
Advertising expenses for February
15,000
February 8
Interest expense on loan for February
5,000
February 10
Depreciation expense for February
12,000
February 12
Income tax expense for February
8,000
February 14
Legal and professional fees for February
7,000
February 16
Insurance expense for February
4,000
February 18
Travel and entertainment expenses for February
6,000
February 20
Supplies expense for February
9,000
February 22
Utilities expenses for February
3,000
Answer:
Profit and loss appropriation account for ABC TECH
For the month ended February 2023
|
Account |
Amount (₦)
Amount written off
Salary expense
Rent expense
Advertising expense
Interest expense on loan
Depreciation expense
Income tax expense
Legal and professional fees
Insurance expense
Travel and entertainment expenses
Supplies expense
Utilities expense
Total Expenses
Net Income
Appropriations:
Amount written off
Net Income after Appropriations
10,000
50,000
20,000
15,000
5,000
12,000
8,000
7,000
4,000
6,000
9,000
3,000
139,000
(139,000)
10,000
(129,000)