Part a)
Section A Ariswer all questions in this section 1 The accountant of Street Wear Pte Ltd, a local company seling fashion apparel, has produced the following set of balances after preparing the income statement for year ended 31 July 2020 5000 Net Loss for the year Retained Bernings at 31 July 2019 Property and plant cost 5000 Accumulated depreciation for property and plant 1700 Specialised equipment at cosi 700 Accumulated depreciation for Specialised equipment 200 Inventory 1478 Trade receivables 710 Trade payables 2000 Bank overdratt Ordinary share capital at $1.00 each 2000 Assedrevaluation reserve 650 The directors met to finalse the accounts and agreed to make the following adjustments. 1. Upon consulting an appraisal company, it was determined that the specialised equipment had an estimated ter value of $350 000 and value-1-188 of 290 000 2 Included at cost in inventory are two batches of old clothing items. Their net realisable values are given below Costs Net Reisable Values 1 30 000 29 000 2 40 500 50 000 3. A review of the bank statement for the month of July revealed 520 000 of cheques which were un represented by suppliers and several choques from major credit customers which were directly credited amounting to 5128 000 A mejor credit customer who owed 510 000 has gone bankrupt. Allowance for impairment of trade receivables is estimated to be 5% of trade recevables at year end. 5. An invoice Cated 1 March 2020 for $45 000 for a newly buit extension for the plant had been posted to repairs and maintenance account. This amount included repair costs of $2 500 and insurance of S2 100 for the 12 months to 28 February 2021. 6. The company depreciate property and plant at 25% on netbook value. A ful year's depreciation is charged in the year of acquisition and none in the year of disposal. REQUIRED Prepare a statement to show the corrected net prodt or loss for the year ended 31 July 2020 17 Prepare an extract of the balance sheet as at 31 July 2020, showing only assets of the company 161 Section A Ariswer all questions in this section 1 The accountant of Street Wear Pte Ltd, a local company seling fashion apparel, has produced the following set of balances after preparing the income statement for year ended 31 July 2020 5000 Net Loss for the year Retained Bernings at 31 July 2019 Property and plant cost 5000 Accumulated depreciation for property and plant 1700 Specialised equipment at cosi 700 Accumulated depreciation for Specialised equipment 200 Inventory 1478 Trade receivables 710 Trade payables 2000 Bank overdratt Ordinary share capital at $1.00 each 2000 Assedrevaluation reserve 650 The directors met to finalse the accounts and agreed to make the following adjustments. 1. Upon consulting an appraisal company, it was determined that the specialised equipment had an estimated ter value of $350 000 and value-1-188 of 290 000 2 Included at cost in inventory are two batches of old clothing items. Their net realisable values are given below Costs Net Reisable Values 1 30 000 29 000 2 40 500 50 000 3. A review of the bank statement for the month of July revealed 520 000 of cheques which were un represented by suppliers and several choques from major credit customers which were directly credited amounting to 5128 000 A mejor credit customer who owed 510 000 has gone bankrupt. Allowance for impairment of trade receivables is estimated to be 5% of trade recevables at year end. 5. An invoice Cated 1 March 2020 for $45 000 for a newly buit extension for the plant had been posted to repairs and maintenance account. This amount included repair costs of $2 500 and insurance of S2 100 for the 12 months to 28 February 2021. 6. The company depreciate property and plant at 25% on netbook value. A ful year's depreciation is charged in the year of acquisition and none in the year of disposal. REQUIRED Prepare a statement to show the corrected net prodt or loss for the year ended 31 July 2020 17 Prepare an extract of the balance sheet as at 31 July 2020, showing only assets of the company 161
