atlons/AnnotationApp.aspx?Annotation AccessArea=1&AnnotationOfUserid=0&IsReadOnly=True&Learning Objectid=308209428&LearningObjectinstanceld=4394339878 MobileBrowser-Not Defined Section B Answer 2 questions only. This section carries 40 marks. Question B1 A business financial year runs from 1st April to 31st March each year. On 1st July 2019 a vehicle was purchased for use in the business at a cost of 20,500. The vehicle is paid for by cheque. Depreciation is to be charged at the rate of 30% per year using the Reducing Balance method applied for a full year in year of purchase and none in year of disposal. Separate accounts are kept in the books to record the cost and provision for depreciation of fixed assets. Required: (a) Calculate the annual depreciation for the Vehicle over the two years of its [2] life. (b) Show for the years 2019 / 2020 and 2020 / 2021 the accounting entries [4] within the Vehicle Cost Account and Accumulated Depreciation for Vehicle Account. (c) Show the Written Down Value of the Vehicle as per the Statement of [2] Financial Position as at 31st March 2020 and 2021. (d) If a non-current asset cost 23,000, the accumulated depreciation on this [6] asset is 18,200 and the asset is sold for 5,800. [i] Calculate the profit or loss on disposal. [ii] Write up the relevant ledger accounts to record this disposal. (e) Explain the importance of accounting for depreciation [6] TALLESSAled=1&AnnotationOfUserid=0&IsReadOnly=True&LearningObjectid=308209428&LearningObjectInstanceld-4394339878 MobileBrowser-Not Defined Question B3 The book-keeper of Upholland Retailers extracted a Trial Balance as at the financial year ended 31st March 2021. The book-keeper was unable to balance the Trial Balance finding that debit balances exceeded credit balances by 41. A Suspense Account was opened. The accountant of Upholland Retailers decided to progress with the preparation of a draft Statement of Profit or Loss and calculated the net profit as 121,560. The following errors were subsequently discovered: 1 Cash discount of 156 allowed to Delight Furnishings, an account receivable, was credited to their account as 165 2 The balance of 56,800 on the Vehicles (Cost) Account was listed on the Trial Balance as 56,500 3 Loan interest of 200 charged by the bank was credited to the Bank Account in the Cash Book but was not posted to the Loan Interest Account in the ledger 4 Property repairs amounting to 1,750 had been debited in error to the Property Asset Account 5 The total of the discounts received column 450 had not been transferred at the end of March to the Discounts Received Account in the ledger 6 The Rent Account in the ledger was miscalculated resulting in the account balance being overstated by 100 Required: (a) Draft Journal entries to correct the errors discovered for discounts received [6] and rent. (b [4] Reconstruct the Suspense Account showing the elimination of the original difference in the Trial Balance. (c) [6] Prepare a Statement which will amend the net profit figure per the draft Statement of Profit or Loss following the correction of the errors discovered. (d) [4] Explain how a Suspense Account is presented in a statement of Financial Position. atlons/AnnotationApp.aspx?Annotation AccessArea=1&AnnotationOfUserid=0&IsReadOnly=True&Learning Objectid=308209428&LearningObjectinstanceld=4394339878 MobileBrowser-Not Defined Section B Answer 2 questions only. This section carries 40 marks. Question B1 A business financial year runs from 1st April to 31st March each year. On 1st July 2019 a vehicle was purchased for use in the business at a cost of 20,500. The vehicle is paid for by cheque. Depreciation is to be charged at the rate of 30% per year using the Reducing Balance method applied for a full year in year of purchase and none in year of disposal. Separate accounts are kept in the books to record the cost and provision for depreciation of fixed assets. Required: (a) Calculate the annual depreciation for the Vehicle over the two years of its [2] life. (b) Show for the years 2019 / 2020 and 2020 / 2021 the accounting entries [4] within the Vehicle Cost Account and Accumulated Depreciation for Vehicle Account. (c) Show the Written Down Value of the Vehicle as per the Statement of [2] Financial Position as at 31st March 2020 and 2021. (d) If a non-current asset cost 23,000, the accumulated depreciation on this [6] asset is 18,200 and the asset is sold for 5,800. [i] Calculate the profit or loss on disposal. [ii] Write up the relevant ledger accounts to record this disposal. (e) Explain the importance of accounting for depreciation [6] TALLESSAled=1&AnnotationOfUserid=0&IsReadOnly=True&LearningObjectid=308209428&LearningObjectInstanceld-4394339878 MobileBrowser-Not Defined Question B3 The book-keeper of Upholland Retailers extracted a Trial Balance as at the financial year ended 31st March 2021. The book-keeper was unable to balance the Trial Balance finding that debit balances exceeded credit balances by 41. A Suspense Account was opened. The accountant of Upholland Retailers decided to progress with the preparation of a draft Statement of Profit or Loss and calculated the net profit as 121,560. The following errors were subsequently discovered: 1 Cash discount of 156 allowed to Delight Furnishings, an account receivable, was credited to their account as 165 2 The balance of 56,800 on the Vehicles (Cost) Account was listed on the Trial Balance as 56,500 3 Loan interest of 200 charged by the bank was credited to the Bank Account in the Cash Book but was not posted to the Loan Interest Account in the ledger 4 Property repairs amounting to 1,750 had been debited in error to the Property Asset Account 5 The total of the discounts received column 450 had not been transferred at the end of March to the Discounts Received Account in the ledger 6 The Rent Account in the ledger was miscalculated resulting in the account balance being overstated by 100 Required: (a) Draft Journal entries to correct the errors discovered for discounts received [6] and rent. (b [4] Reconstruct the Suspense Account showing the elimination of the original difference in the Trial Balance. (c) [6] Prepare a Statement which will amend the net profit figure per the draft Statement of Profit or Loss following the correction of the errors discovered. (d) [4] Explain how a Suspense Account is presented in a statement of Financial Position