Question
Hobbs does not keep proper books of account. You ascertain that his bank payments and receipts during the year to 31 December 2019 were
Hobbs does not keep proper books of account. You ascertain that his bank payments and receipts during the year to 31 December 2019 were as follows: Reciepts Payments Sh. sh Balance 1 Jan 2019 572 Purchases (creditors) 10,007 Cheques for sales 13,179 Expenses 2,950 Cash banked 14,005 Drawings 11,250 Balance 31 Dec 2019 3,751 Delivery van 7,300 31,507 31,507 From a cash notebook you ascertain: Cash in hand 1 January 2019 Cash takings Purchases paid in cash(Creditors) Expenses paid in cash Cash in hand 31 December 2009 Drawings by proprietor in cash Sh. 62 16,300 1,850 375 65 Unknown You discover that assets and liabilities were as follows: Debtors Trade creditors Stock on hand 1 Jan 2019 31 Dec 2019 Sh. Sh. 1,850 2,070 1,250 1,420 2,650 2,990 Depreciation on the van is to be provided at the rate of 20% per annum. Required to prepare. (i)Statement of Affairs as at 1/1/2019 (ii) Income Statement for the year ended 31/12/2019 (iii) Statement of financial position as at 31/12/2019
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