QUESTION b

Hilary, the bookkeeper of Texas Bakery. had taken the sales day book home to do some work. Unfortunately, she left the sales day book on the train and it has not been found. However, She has been able to provide you with the following information for the year ended 31 December 2015 1. All sales were credit sales. However, the last month's sales had not been posted to the accounts before the sales day book was lost. 2. A summary of the movements on the bank statements during the year reveals the following: Receipts Money from customerse Payments 380,000 - Machinery and equipment Payments to payables (suppliers) 4. General expenses Rent - Electricity Wages and salaries:- Stationery 42,5002 215,000 2,3004 45,000 9,0000 60,000 1,875 The balance on the bank account in the books of Texas Bakery amounted to 8,225 debit at 31 December 2015. At the 31 December 2014, the balance was 3,900 debit (1.e. money in the bank). 3. Rent is paid annually on 1 April and the payment for rent includes a prepayment for three months. The opening prepayment for rent at 1 January 2015 was 7.500. 4. At the 31 December 2015, 150 was owed in respect of electricity.- 5. Sales are made at a mark-up of 70%. 6. Receivables at the 31 December 2014 totalled 45,000. Other relevant year end balances were as follows: 2015 2014 Inventory Payables 15,000 16,300 14.400 15.050 7. All machinery is written off over five years. A machine sold auring the year for 10,000 was three years old and had originally cost 35.000. The proceeds from the sale of the machine were not banked, but Hilary kept the money for her own personal use. L 8. The cost of machinery at 31 December 2014 was 175,000 and the net book value at that date was 108,000. No depreciation has yet been charged for the year to 31 December 2015. 9. Wages and salary payments include a salary of 20,000 which Hilary paid to herself. 10. At 31 December 2015, 600 is due in respect of accountancy fees and 100 for advertising costs.e 11. A customer of Texas Bakery, who owed 1,000, went bankrupt on 18 December 2015. 4 12. An allowance for doubtful debts amounting to 5% of receivables is to be provided for the year ended 31 December 2015. Requirement (a) Calculate the opening capital of Texas Bakery as at 1 January 2015. I 5 Marks (b) Prepare the statement of profit and loss for the year ended 31 December 2015 of Texas Bakery and its statement of financial position as at that date (show all your workings).- 27 Marks Hilary, the bookkeeper of Texas Bakery. had taken the sales day book home to do some work. Unfortunately, she left the sales day book on the train and it has not been found. However, She has been able to provide you with the following information for the year ended 31 December 2015 1. All sales were credit sales. However, the last month's sales had not been posted to the accounts before the sales day book was lost. 2. A summary of the movements on the bank statements during the year reveals the following: Receipts Money from customerse Payments 380,000 - Machinery and equipment Payments to payables (suppliers) 4. General expenses Rent - Electricity Wages and salaries:- Stationery 42,5002 215,000 2,3004 45,000 9,0000 60,000 1,875 The balance on the bank account in the books of Texas Bakery amounted to 8,225 debit at 31 December 2015. At the 31 December 2014, the balance was 3,900 debit (1.e. money in the bank). 3. Rent is paid annually on 1 April and the payment for rent includes a prepayment for three months. The opening prepayment for rent at 1 January 2015 was 7.500. 4. At the 31 December 2015, 150 was owed in respect of electricity.- 5. Sales are made at a mark-up of 70%. 6. Receivables at the 31 December 2014 totalled 45,000. Other relevant year end balances were as follows: 2015 2014 Inventory Payables 15,000 16,300 14.400 15.050 7. All machinery is written off over five years. A machine sold auring the year for 10,000 was three years old and had originally cost 35.000. The proceeds from the sale of the machine were not banked, but Hilary kept the money for her own personal use. L 8. The cost of machinery at 31 December 2014 was 175,000 and the net book value at that date was 108,000. No depreciation has yet been charged for the year to 31 December 2015. 9. Wages and salary payments include a salary of 20,000 which Hilary paid to herself. 10. At 31 December 2015, 600 is due in respect of accountancy fees and 100 for advertising costs.e 11. A customer of Texas Bakery, who owed 1,000, went bankrupt on 18 December 2015. 4 12. An allowance for doubtful debts amounting to 5% of receivables is to be provided for the year ended 31 December 2015. Requirement (a) Calculate the opening capital of Texas Bakery as at 1 January 2015. I 5 Marks (b) Prepare the statement of profit and loss for the year ended 31 December 2015 of Texas Bakery and its statement of financial position as at that date (show all your workings).- 27 Marks