BELOW THERE IS THE EXAMPLE OF FORMAT FROM MY SYLLABUS PLEASE FOLLOW THAT
Question 10 Jason the owner of Jason Enterprise extracted the following balances as at 31 December 2018. Particulars Debit ($) Credit ($) 2,368 200 Beginning Inventory Carriage outwards Carriage inwards Return inwards and outwards 310 248 322 Purchases 10,874 Sales 19,600 Salaries and wages 3,862 211 Advertisement Rent 304 78 164 216 166 Insurance Repairs of motor vehicle Office expenses Travel expenses General expenses Premises Fixtures and fittings Trade receivables and payables Fixed deposit at BIMB Cash in hand Cash at bank Drawings Capital Loan from Finance company Discount allowed and received 314 35,555 2,800 3,896 8.000 1,231 482 1.210 1,200 36,000 15,000 200 45 Commission revenue 150 72,503 72,503 Additional information: i. ii. iii. iv. Inventory as at 31 December 2020 are valued at $2,900. Rent accrued on 31 December 2020 was $50. Commission revenue of $50 was still not received as at 31 December 2020 Depreciation for the year are to be provided as follows: Fixtures and fitting 20% on straight line method Premises 15% on straight line method Provision for doubtful debts of 3% of account receivables was created on 31 December 2020. During the year the proprietor took goods costing $350 from the business for his own use. V. vi. Prepare: a) Prepare a Statement Comprehensive Income for the year ended 31 December 2018. (10 marks) b) Prepare a Statement of Financial Position as at 31 December 2018. (10 marks) (Total: 20 Marks) Halimi Enterprise Income Statement as at 31 December 2019 Sales 292,000 Less: Return Inwards (1,200) Net Sales 290,800 (-) Less: Cost of Goods Sold Opening Inventory 45, 500 (+) Add: Purchases 180,000 Insurance on purchases 1.200 Duty on purchases 550 .) Less: Return Outwards (850) (+) Add: Carriage Inwards 200 () Less: Closing Inventory (22,000) (204, 600) GROSS PROFIT 86,200 (+) Add: Revenue Interest received on Fixed Deposit 2,040 Decrease Provision of Doubtful Debt (2,000-1,260) 740 TOTAL INCOME 88, 980 (-) Less: Expenses Carriage Outwards 1,000 General Expenses (5,420+300) 5,720 Utilities (2,000+500) 2,500 Discount Allowed 1,000 Depreciation Fixture and Fittings (22,200x5%) 1,110 Depreciation Motor Vehicle (60,000-11,400x10%) 4,860 Bad Debts (500+300) 800 Salary Expenses 25,000 Commissions Expenses (2,200-550) 1,650 Interest Loan BIMB (240,000x8%) 19,200 62,840 NET PROFIT 26,140 Halimi Enterprise Statement of Financial Position as at 31" December 2019 ASSETS Non-current Assets Acc. Depreciation Carrying Amount Cost Fixture & Fittings 22,200 (1.110 1,110) 19,980 Motor vehicle 60,000 14.860+11,400) 43.740 Land and Building 265,000 265,000 7% Fixed Deposit 12.000 12,000 Total non-current assets - 340, 720 Current Assets Closing Inventory 22.000 Prepaid Expenses 550 Cash in hand (5,600-200) 5,400 Cash at bank 34.000 Account Receivables/25,500-300) 25,200 Less: Provision of Doubtful Debt (1.260) 23.940) Total Current Assets 85,890 Total Assets 426,610 EQUITY & LIABILITIES Capital 131.920 Add: Net Profit 26.140 (3,700) Less: Drawings (3,500+200) Total Equity 154,360 Non-current liabilities Loan from BIMB 240.000 140,000 Total non-current liabilities 394,360 Current Liabilities Account Payable 12.250 Accrued Utilities 500 Accrued General Expenses 300 Accrued Interest Loan 19.200 Total Current Liabilities 32,250 Total Equity & Liabilities 426,610
