Profit And Loss Appropriation Account: - Amount Written Off - SS2 Accounting Past Questions and Answers - page 1
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 |
Particulars |
Amount (₦) |
|
1 July |
Amount written off for research and development |
50,000 |
|
3 July |
Depreciation on office equipment |
20,000 |
|
5 July |
Provision for doubtful debts |
10,000 |
|
8 July |
Loss on disposal of fixed assets |
30,000 |
|
10 July |
Advertising expenses |
15,000 |
|
12 July |
Interest expense |
25,000 |
|
15 July |
Salaries and wages |
100,000 |
|
18 July |
Rent expense |
50,000 |
|
20 July |
Bad debt expense |
5,000 |
|
22 July |
Insurance expense |
12,000 |
|
25 July |
Utilities expense |
8,000 |
|
28 July |
Bank charges |
3,000 |
Answer:
Profit ad loss appropriation account for ABC TECH
For the month ended February 2023
|
Particulars |
Amount (₦) |
|
Gross Profit Add: Other income Total Income Less: Cost of goods sold Gross Profit Margin Operating Expenses: Amount written off for research and development Depreciation on office equipment Provision for doubtful debts Loss on disposal of fixed assets Advertising expenses Interest expense Salaries and wages Rent expense Bad debt expense Insurance expense Utilities expense Bank charges Total Operating Expenses Net Profit before Tax Less: Taxation Net Profit for the year Appropriations: Amount written off Retained Earnings |
- - - - - 50,000 20,000 10,000 30,000 15,000 25,000 100,000 50,000 5,000 12,000 8,000 3,000 318,000 - - - - 318,000 - |