ACC101 Financial Accounting MNUBS SCENARIO Ali lbrahim is a sole trader and his financial year ends on 31 December every year. He provided the following balances on 31 December 2017 Amounts () ,400 100x6 ,700 100x 7 2880- 60 x 7 420 100 x 6 800 100 x 6 22,000 20x 6 240 100x6 940+50 x 6 1,160+50 x 6 720 20 6 58,000 100 x 1 2,900 100 x 6 2.340-10x6 540+60 x 7 3,900 100x6 2.460+10x 6 37,520+30x1 860+40x 6 4,800-70x1 13,700+70x 1 680+40 x6 32 220+30 x 1 7,880 100x1 1,000 1007 Items Accumulated depreciation - fumishing Administrative expenses Allowance for receivable Bank overdraft Capital at 1 January 2017 Cash Discount allowed Discount received Equipment Furnishing General expense Insurance expense Inventories at 1 January 2017 Marketing expenses Purchases Purchases return Rental expense Salaries and wages expense Sales return Sales revenue Trade payable Trade receivable Equipment costing $(2,000 100 x 6) with a scrap value of S(100+10 x1) was sold for S/200 10 x 6) cash during the for the disposal of the equipment. It is the business policy to depreciate equipment using straight line method on cost at furniture was bought or sold during the year made on 1st October 2016 was $(100+40 x 6) and the payment made on 1st October 2017 was $(100+40 1) by The following additional details are discovered after balances were extracted on 31 Deoember 2017 year and this equipment was fully depreciated by the date of disposal. Relevant accounting entries were not yet made 10% per annum. Furniture is depreciated using reducing balance method of deprecation at 20% per annum. The business pays fire insurance annually in advance on 1s October each year. The annual fire insurance payment cash. No accounting entry has been made for the latest fire insurance payment. The rent expense of the office is made uarterly in arrears on 1 February, 1 May,1 August and 1 November each year in equal instalments. The office rent payment is S2,400+366) per year. The total rental expense for the year did not include the office rent for the last quarter of the year because it was still outstanding at the end of the year It was decided that debts of $40010 x 6) were to be writen off because those customers declared bankrupt A special allowance of 25% has to be made from a debt of $(1,000+20 x 7). It is the policy ofthe business to make a general allowance 10% for trade receivable after deducting any debts considered for special allowanoes and al irrecoverable debts ACC101 Financial Accounting MNUBS SCENARIO Ali lbrahim is a sole trader and his financial year ends on 31 December every year. He provided the following balances on 31 December 2017 Amounts () ,400 100x6 ,700 100x 7 2880- 60 x 7 420 100 x 6 800 100 x 6 22,000 20x 6 240 100x6 940+50 x 6 1,160+50 x 6 720 20 6 58,000 100 x 1 2,900 100 x 6 2.340-10x6 540+60 x 7 3,900 100x6 2.460+10x 6 37,520+30x1 860+40x 6 4,800-70x1 13,700+70x 1 680+40 x6 32 220+30 x 1 7,880 100x1 1,000 1007 Items Accumulated depreciation - fumishing Administrative expenses Allowance for receivable Bank overdraft Capital at 1 January 2017 Cash Discount allowed Discount received Equipment Furnishing General expense Insurance expense Inventories at 1 January 2017 Marketing expenses Purchases Purchases return Rental expense Salaries and wages expense Sales return Sales revenue Trade payable Trade receivable Equipment costing $(2,000 100 x 6) with a scrap value of S(100+10 x1) was sold for S/200 10 x 6) cash during the for the disposal of the equipment. It is the business policy to depreciate equipment using straight line method on cost at furniture was bought or sold during the year made on 1st October 2016 was $(100+40 x 6) and the payment made on 1st October 2017 was $(100+40 1) by The following additional details are discovered after balances were extracted on 31 Deoember 2017 year and this equipment was fully depreciated by the date of disposal. Relevant accounting entries were not yet made 10% per annum. Furniture is depreciated using reducing balance method of deprecation at 20% per annum. The business pays fire insurance annually in advance on 1s October each year. The annual fire insurance payment cash. No accounting entry has been made for the latest fire insurance payment. The rent expense of the office is made uarterly in arrears on 1 February, 1 May,1 August and 1 November each year in equal instalments. The office rent payment is S2,400+366) per year. The total rental expense for the year did not include the office rent for the last quarter of the year because it was still outstanding at the end of the year It was decided that debts of $40010 x 6) were to be writen off because those customers declared bankrupt A special allowance of 25% has to be made from a debt of $(1,000+20 x 7). It is the policy ofthe business to make a general allowance 10% for trade receivable after deducting any debts considered for special allowanoes and al irrecoverable debts