QUESTION 2
You have been contacted by the owner of a Jewelery Retail shop, Magna Qarta , to prepare their accounts. You observe that they do not have a full set of accounts. However, you extract the following data from their records
Balances as at 31/12/2019
Property, plant and equipment	235000
Accumulated Depreciation	57246
inventories	84600
Receivables	47000
Pepayments-Rates	1880
Bank	9400
Cash	2820
Creditors	18800
Electricity Accrued	1175
Balances as at 31/12/2020
inventories	159330
Receivables	56400
Pepayments-Rates	2115
Bank overdraft	72850
Cash	2820
Creditors	21620
Electricity Accrued	1410
The records show cash and bank transactions as follow:
Cash Receipts	Balance B/D	2820
Sales	70500
Cash Payments	Deposit into bank	70500
Bank Receipts	Balance B/D	9400
Accounts Receivable	658000
5% Loan received	141000
Sale proceeds from sale of motor van	38540
Cash banked	70500
Bank Payments
Accounts Payables	517000
Rates	42300
Electricity	9400
Telephone	7050
Loan Interest	7050
Insurance	4700
Wages and Salaries	94000
Drawings	117500

Property, Plant and Equipment	188000
Sundry Expenses	3290
ADDITIONAL INFORMATION
The loan was received on 1st January 2019 and depreciation for PPE is at 20% per annum
Cost of motor van that was disposed off	47000
Accumulated Depreciation of the motor van that was disposed off	8930
Discount received during the year amounted to	9400
During the year the owner gifted a pair of earings to his daughter worth	9400