Section A continued. compulsory: Financial Accounting scene The Set of Finance Position ( Both of Jones 3 Dec 2020 shown below Jones Balance Sheet 31 December 2020 Feeds (NBV) 110.000 Current assets Inventory 9.500 Accounts receivable debtors) 12.000 Prepaid Advertising 800 Cash account 770 23 OTO Current liabilities: Accounts payable (creditors) 7.800 Accrued rent and rates 270 Bank overdratt 2,100 10.170 Net current assets 12.900 Total assets less current liabilities: 122.900 Long-term liabilities: Long-term loan (34,000) 88.900 Jones: Capital account 88.900 For the year ended 31 December 2020, the following transaction details have been extracted from the business books of account: Credit sales and returns: Sales invoices 160,000 Sales credit notes 6,200 Credit purchases and returns: Purchase invoices 95,000 Purchase credit notes 4,000 A summary of the bank and cash transactions of Jones, for the year to 31 December 2020 is shown in the 2-column cash book shown below. Financial and Management Account - Muinam 2020-21 CA Detail istened from Balance Bid cash account Sales Receivables (Debtors) aw Banal Cash hove shat cosh b boric Jones: 2 column cash book Cash Det 770 Balance Bio 13.000 Purchases 148000 Payabiles (Credors) 1700 Renard rates Wages Advertising Sundry expenses Long-term loan Drawings Bank Balance eld 14,570 149,700 70 500 2.100 4000 30.000 6.000 2.100 24,100 4.000 1,500 3.000 5.200 15.000 1700 70 500 14.570 149,700 Balances Bld Jones: Year-end adjustments: 1) Inventory at 31 December 2020 has been valued at 10,000. 2) Depreciation should be charged to fixed assets at 10% on the NBV B/lwd. 3) Jones identifies a fully depreciated fixed asset (made from aluminium) with zero NBV. He disposes it as scrap to an aluminium recycling centre that purchases this material and therefore, he makes 270 profit. 4) A specific bad debt of 1200 should be written off. 5) Discounts received from suppliers amounted to 500. 6) The accrual for rent and rates should be increased to 300. 7) The prepayment for Advertising decreased to 600. 8) The bank payment to the long-term loan account included 350 interest. 9) During the year, Jones took goods (recorded as purchases) for his personal use, the value (at cost) being 1,200. Required: a. Prepare journal entries to account for the information given above. (10 Marks) b. Prepare the Income Statement (Trading. Profit and Loss account) of Jones for the year ended 31 December 2020. (10 Marks) c. Prepare the Statement of Financial Position (Balance Sheet) of Jones as at 31 December 2020. (10 Marks) Show all workings. Total: 30 marks END OF QUESTION A2 (30 Marks) END OF SECTION A Total 45 Marks) Section A continued. compulsory: Financial Accounting scene The Set of Finance Position ( Both of Jones 3 Dec 2020 shown below Jones Balance Sheet 31 December 2020 Feeds (NBV) 110.000 Current assets Inventory 9.500 Accounts receivable debtors) 12.000 Prepaid Advertising 800 Cash account 770 23 OTO Current liabilities: Accounts payable (creditors) 7.800 Accrued rent and rates 270 Bank overdratt 2,100 10.170 Net current assets 12.900 Total assets less current liabilities: 122.900 Long-term liabilities: Long-term loan (34,000) 88.900 Jones: Capital account 88.900 For the year ended 31 December 2020, the following transaction details have been extracted from the business books of account: Credit sales and returns: Sales invoices 160,000 Sales credit notes 6,200 Credit purchases and returns: Purchase invoices 95,000 Purchase credit notes 4,000 A summary of the bank and cash transactions of Jones, for the year to 31 December 2020 is shown in the 2-column cash book shown below. Financial and Management Account - Muinam 2020-21 CA Detail istened from Balance Bid cash account Sales Receivables (Debtors) aw Banal Cash hove shat cosh b boric Jones: 2 column cash book Cash Det 770 Balance Bio 13.000 Purchases 148000 Payabiles (Credors) 1700 Renard rates Wages Advertising Sundry expenses Long-term loan Drawings Bank Balance eld 14,570 149,700 70 500 2.100 4000 30.000 6.000 2.100 24,100 4.000 1,500 3.000 5.200 15.000 1700 70 500 14.570 149,700 Balances Bld Jones: Year-end adjustments: 1) Inventory at 31 December 2020 has been valued at 10,000. 2) Depreciation should be charged to fixed assets at 10% on the NBV B/lwd. 3) Jones identifies a fully depreciated fixed asset (made from aluminium) with zero NBV. He disposes it as scrap to an aluminium recycling centre that purchases this material and therefore, he makes 270 profit. 4) A specific bad debt of 1200 should be written off. 5) Discounts received from suppliers amounted to 500. 6) The accrual for rent and rates should be increased to 300. 7) The prepayment for Advertising decreased to 600. 8) The bank payment to the long-term loan account included 350 interest. 9) During the year, Jones took goods (recorded as purchases) for his personal use, the value (at cost) being 1,200. Required: a. Prepare journal entries to account for the information given above. (10 Marks) b. Prepare the Income Statement (Trading. Profit and Loss account) of Jones for the year ended 31 December 2020. (10 Marks) c. Prepare the Statement of Financial Position (Balance Sheet) of Jones as at 31 December 2020. (10 Marks) Show all workings. Total: 30 marks END OF QUESTION A2 (30 Marks) END OF SECTION A Total 45 Marks)