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) |