Question 1

The following balances have been extracted from the accounts of Peya, a sole trader, for the period ended 31 March 2020. N$ Sales 427,726 Carriage inwards 476 Wages and salaries 64,210 Carriage outwards 829 Purchases 302,419 Rent and rates 12,466 Heat and light 4,757 Stock at 1 April 2019 15,310 Drawings 21,600 Equipment at cost 102,000 Motor vehicles at cost 43,270 Provision for depreciation equipment 22,250 motor vehicles 8,920 Debtors 50,633 Creditors 41,792 Bank 3,295 cr Sundry expenses 8,426 Cash 477 Capital 122,890 The following information as at 31 March 2020 is also available: (1) N$350 is owing for heat and light (2) N$620 has been prepaid for rent and rates (3) Depreciation is to be provided for the year as follows: equipment at 10% on cost and motor vehicles at 20% on cost (4) Stock at 31 March2020 isN$16,480 Required: (a) Prepare the trial balance for Peya (before any adjustments) as at 31 March 2020. (7 marks) (b) Prepare the trading and profit and loss accounts for Peya for the year ending 31 March 2020. (12 marks) (c) Prepare the balance sheet for Peya as at 31 March 2020. (12 marks) (Total 31 marks) Due Date: