Question 6 - Financial Statements (39 marks) The folowing account balances were extracted from the books of S. Burke, a sole trader, on 31 December 2016: Fixtures & fittings at cost Accumulated depreciation - Fixtures & fittings at cost Motor Vehicles at cost Accumulated depreciation Motor Vehicles at cost Computers at cost Accumulated depreciation - computers Inventory as at 1/1/2016 Receivables Payables Bank overdraft VAT liability 5% Bank loan Sales Purchases Sales returns purchases returns Discounts allowed Discounts received Carriage outwards Carriage inwards Light and heat Telephone and internet Insurance Rent Term loan interest Wages and salaries Provision for bad debts 1/1/2016 Bad debts Drawings Capital Totals Amount NS 200 000 20 000 200 000 20 000 178 000 24 100 42 190 98 180 84 150 21 020 21 400 280 500 717 500 422 300 13 240 9 170 3 120 7 770 4 520 4 750 8 790 5 600 18 000 57 000 6 000 39 070 6 430 5 930 19 600 114 250 2 652 580 Page 12 of 13 The folowing information, which has not been accounted for above, is also available: Inventory on hand on 31 December 2016, was valued at N$ 79 000 An amount of N$ 3 180 owed by ABC who have been declared bankrupt must be w iv. Depreciation to be provided as follows: a. - Fixtures and fittings. 5% per annum on cost using straight line method b. - Vehicles, 20% per annum on reducing balance method c. - computers -25% per annum on reducing balance method Insurance paid of N$ 12 000 is in respect of motor vehicle covers for the period 01 July 2016 to 30 June 2017 Provision (Allowance) for bad debts should be adjusted to 10% of the receivable amount Rent of N$ 5 000 for the month of December 2016 has not been paid and this has not been recorded in the books. (Ignore any additional interest expense not accrued) You are required to: a. Prepare the statement of comprehensive Income statement) of S Burke for the year ended 31 December 2016 (21 marks) b. Prepare a statement of financial position (Balance Sheet) for S Burke as at 31 December 2016 (18 marks) The End!! Page 13 of 13 The following information, which has not been accounted for above, is also available: i. Inventory on hand on 31 December 2016, was valued at N$ 79 000. ii. An amount of N$ 3 180 owed by ABC who have been declared bankrupt must be written off iv. Depreciation to be provided as follows: a. - Fixtures and fittings, 5% per annum on cost using straight line method b. - Vehicles, 20% per annum on reducing balance method C. - computers -25% per annum on reducing balance method Insurance paid of N$ 12 000 is in respect of motor vehicle covers for the period 01 July 2016 to 30 June 2017 Provision (Allowance) for bad debts should be adjusted to 10% of the receivable amount Rent of N$ 5 000 for the month of December 2016 has not been paid and this has not been recorded in the books. (Ignore any additional interest expense not accrued) V. vi. You are required to: a. Prepare the statement of comprehensive Income statement) of S Burke for the year ended 31 December 2016 (21 marks) b. Prepare a statement of financial position (Balance Sheet) for S Burke as at 31 December 2016 (18 marks) The End
