Prepare an income statement for the year ended 30 June 2023 from the following information. Revenue P40 000 Premises P7 500 Trade payables P10,000 Discount received P1 000 Wages and salaries P2 500 Purchases P28 000 Insurance P750 Bank loan P8 250 Rent P3 000 Trade receivables P8 600 Electricity P900 Bank P6 700 Opening inventory P1 300 and closing inventory P4 500

Banyanas Financial year ends on 30th June. She maintains a provision for doubtful debts at 5% of the trade receivables at the end of the year.

Banyana provided the following information:

P

2020 July 1 Balance on provision for doubtful debts 900

2021 June 30 Total trade receivables 20000

2022 June 30 Total trade receivables 16000

On 1 July 2020 the balance on the provision for doubtful debts account was P900.

Write up the provision for doubtful debts account for each of the years ended 30th June 2021 and June 2022. Balance the account at the end of each year. (5 Marks)

5. State and describe any 5 (five) reasons for the difference between cash book bank balance and Bank statement balance. (5 Mark)

6. Prepare an income statement for the year ended 30 June 2023 from the following information. Revenue P40 000; Premises P7 500; Trade payables P10,000; Discount received P1 000; Wages and salaries P2 500; Purchases P28 000; Insurance P750; Bank loan P8 250; Rent P3 000; Trade receivables P8 600; Electricity P900; Bank P6 700; Opening inventory P1 300, and closing inventory P4 500. (5 Mark)