The following are the transactions for Tara's T-Shirts,a sole trader clothing retailer,for the month of January of the current year.Tara uses the perpetual inventory system.Ignore GST.All transactions are on credit unless otherwise stated.
Additional information:
• The ending stocktake (count)is $42,300.
• Rates are estimated to be $2,100 for the year.
• Commission is for work which is only 25% completed.
• A provision of 5% for doubtful debts is to be made.
• Depreciation on the buildings is to be at 3% per annum straight line (1 month).
• Depreciation on equipment is to be at 25% per annum diminishing value (1 month).
Using the data above,complete an accounting equation worksheet using the format given in Smart,Awan & Baxter,p.163.Show the final calculation of A = L + OE.
Principles of Accounting 5th Edition Chapter 6 Example examination questions
© Pearson 2014 PAGE 13

Question

The following are the transactions for Tara's T-Shirts,a sole trader clothing retailer,for the month of January of the current year.Tara uses the perpetual inventory system.Ignore GST.All transactions are on credit unless otherwise stated.
  Additional information:
• The ending stocktake (count)is $42,300.
• Rates are estimated to be $2,100 for the year.
• Commission is for work which is only 25% completed.
• A provision of 5% for doubtful debts is to be made.
• Depreciation on the buildings is to be at 3% per annum straight line (1 month).
• Depreciation on equipment is to be at 25% per annum diminishing value (1 month).
Using the data above,complete an accounting equation worksheet using the format given in Smart,Awan & Baxter,p.163.Show the final calculation of A = L + OE.
Principles of Accounting 5th Edition Chapter 6 Example examination questions
© Pearson 2014 PAGE 13

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The Answer is Tara's T-Shirts - accounting equation

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The Following Are the Transactions for Tara's T-Shirts,a Sole Trader