Can you analyze the additional information from 1 to 7 and write down what you think. How can these additional info contribute to the s of fp and income statement? Thank you! l really need to learn the process!

the main part is here. if you this the second picture is not clear enough, you can see this one.

8.5.1 Sample examination questions 8.1 Bits and Pieces Ltd Bits and Pieces Ltd runs a hardware store supplying items to the wholesale trade. The company's trial balance at 30 April 20X8 before any final adjustments have been made is as follows: De 0.000 2. 0 11.100 50.000 20.000 11,200 965.30 Send May 2011 Fur tection Atstationes 19.500 18.000 21.600 11.800 26.50 57.490 5500 1195 350 Toimenpad 1.195.350 The following additional information is available: 1. Depreciation is to be provided ar dhe folkwingentesi Shop fittings 10 per cent per year not Delivery van 20 per cent per year using the decreasing balance method 2. Inventory was counted at the case of business on 30 April 2008 and wus valued at cost, 191,220. This figure included E1,550 for some damaged goods, which would normally be sold for 3,250. They were sold in a clearance sale in May 20X8 for 1,200 3. A customer notified the company on 26 April that he was returning zoods of the wrong specification for which he bad been invoiced 5,200. The returned goods were received into the shop on 2 May on which date the return was recorded in the accounting records The goodscout llits and Pieces Ltd 2,580 and were returned in good condition 4 Bad debts of 62,700 are to be written off, and the provision for doubthildebt is to be increased to 3.450 5. The figure for prepayments in the trial balance is in respect of two month rent paid in advance. As from 1 January 20X8 the company's increased to 124,000 per year, payable quarterly in advance. 6. An invloe received from a supplier for 5,300 was entered in the accounting records as 3500 in ere, and this sum was paid to the supplier 7. Provision is to be inde for the audit fee of 3,000 and for a full year's interest on the debentur loan. 106 8. Corporation tax on the profit for the year to 30 April 20x8 is estimated to be 24,000. Required a. An income statement for Bits and Pieces Ltd for the year ended 30 April 20x8, and its statement of financial position as at 30 April 20X8. in a form suitable for the directors. b. Bits and Pieces Ltd recently appointed a new finance director. Explain to this director why depreciation is charged on the company's non- fixed assets, and suggest possible reasons for the differences in the treatment of shop fittings and delivery vans. 10000 24 w 5. Ay ON Tata 1430 VE20 3.201 7,380 May 200 Canthar Nade 12 treb2011 Oysal Fica ? ME The 13.00 50.000 10.000 11:20 06.10 Puna Wed 643,000 3,500 1.00 To 26,30 SA unde Dhunec 1. The followed in makini wa 1. Depreciation is to be protect the following Shop mort per year Delivery van 20 per imperating the decat balanse -Coppe Tade Bank A 2. Inventory was the clouds 0 Ant w value to the include damaged goods which would mal bewold They were sold in a datele in for 200 1 customer boxile they were poids the section for which had been 5,200. The red nodi wewed into the shop on May on which done there wedding code The good cost Bite de 258 in weed in a condition Med deb of 2.700 to be with for dobi debet is to be inca 23,450 The figure for prettients in the balance in poftw pada mer. As from January 2008 the company increased to 24.000 per yeatable quarterly indian 6 An Inverted from a supplied for 5 300 metered in the congress in true and this sum was paid to the supplies 2. Provisions be made the difee of 3.000 and for a fully est on the debentur loan 1 TOS 8.5.1 Sample examination questions 8.1 Bits and Pieces Ltd Bits and Pieces Ltd runs a hardware store supplying items to the wholesale trade. The company's trial balance at 30 April 20X8 before any final adjustments have been made is as follows: De 0.000 2. 0 11.100 50.000 20.000 11,200 965.30 Send May 2011 Fur tection Atstationes 19.500 18.000 21.600 11.800 26.50 57.490 5500 1195 350 Toimenpad 1.195.350 The following additional information is available: 1. Depreciation is to be provided ar dhe folkwingentesi Shop fittings 10 per cent per year not Delivery van 20 per cent per year using the decreasing balance method 2. Inventory was counted at the case of business on 30 April 2008 and wus valued at cost, 191,220. This figure included E1,550 for some damaged goods, which would normally be sold for 3,250. They were sold in a clearance sale in May 20X8 for 1,200 3. A customer notified the company on 26 April that he was returning zoods of the wrong specification for which he bad been invoiced 5,200. The returned goods were received into the shop on 2 May on which date the return was recorded in the accounting records The goodscout llits and Pieces Ltd 2,580 and were returned in good condition 4 Bad debts of 62,700 are to be written off, and the provision for doubthildebt is to be increased to 3.450 5. The figure for prepayments in the trial balance is in respect of two month rent paid in advance. As from 1 January 20X8 the company's increased to 124,000 per year, payable quarterly in advance. 6. An invloe received from a supplier for 5,300 was entered in the accounting records as 3500 in ere, and this sum was paid to the supplier 7. Provision is to be inde for the audit fee of 3,000 and for a full year's interest on the debentur loan. 106 8. Corporation tax on the profit for the year to 30 April 20x8 is estimated to be 24,000. Required a. An income statement for Bits and Pieces Ltd for the year ended 30 April 20x8, and its statement of financial position as at 30 April 20X8. in a form suitable for the directors. b. Bits and Pieces Ltd recently appointed a new finance director. Explain to this director why depreciation is charged on the company's non- fixed assets, and suggest possible reasons for the differences in the treatment of shop fittings and delivery vans. 10000 24 w 5. Ay ON Tata 1430 VE20 3.201 7,380 May 200 Canthar Nade 12 treb2011 Oysal Fica ? ME The 13.00 50.000 10.000 11:20 06.10 Puna Wed 643,000 3,500 1.00 To 26,30 SA unde Dhunec 1. The followed in makini wa 1. Depreciation is to be protect the following Shop mort per year Delivery van 20 per imperating the decat balanse -Coppe Tade Bank A 2. Inventory was the clouds 0 Ant w value to the include damaged goods which would mal bewold They were sold in a datele in for 200 1 customer boxile they were poids the section for which had been 5,200. The red nodi wewed into the shop on May on which done there wedding code The good cost Bite de 258 in weed in a condition Med deb of 2.700 to be with for dobi debet is to be inca 23,450 The figure for prettients in the balance in poftw pada mer. As from January 2008 the company increased to 24.000 per yeatable quarterly indian 6 An Inverted from a supplied for 5 300 metered in the congress in true and this sum was paid to the supplies 2. Provisions be made the difee of 3.000 and for a fully est on the debentur loan 1 TOS