Thanks in advance for your workings and explanation
The following are summaries of the cash book and bank accounts of Patsy Knight, a sole Further checks revealed the following during 2018: proprietor, who does not keep her books using the double entry system. During the financial year a trade debt of $10,200 owed by Linda Grayson was off set Bank Summary $ against the $20,000 owing to the same Linda Grayson a trade creditor. $ Balance on 1 January 2018 60,000 . In addition to the goods returned above, Jane Hutton, a cash sales customer returned Receipts: goods during the financial year amounting to $7,000. Jane Hutton was repaid her Receivables 50,000 $7,000 from the daily cash sales. This was not yet reflected in the business records. Cash bank 22.200 372.200 Patsy Knight grants a credit period of 30 days to customers. The closing trade 432,200 receivables' balance includes a debt of $8,000 from Favela Brown. The goods were Payments: sold to Favela in November 2017. Favela went to the United States of America for a Trade payables 310,000 two (2) weeks' vacation in February 2018. On December 31, 2018 Favela was still in Rent 10,100 Machinery the USA. 30.400 Wages 90,200 Patsy Knight keeps a cash float of $10,000 for change in his retail outlet. Excess cash Insurance 8,050 is deposited in the bank account and cash shortfall is taken from the bank. Customers (dishonoured cheque) 800 The accounting fee for preparing the 2018 financial statements is estimated at Loan interest 950 (450.500) $45,000. Balance on December 2018 (18,300) The following additional information is also available: Cash Summary 1 January 31 December $ $ 2018 2018 Balance on 1 January 2018 10,000 $ $ Receipts: Inventories 8,300 9,400 Cash sales 90,700 Machinery 19,800 40,400 Receivables 10.100 100.800 Rent paid in advanced 1,000 1 10,800 Rent outstanding 1,050 Payments: Trade receivables 18,100 19,200 Drawings 50.600 Trade payables 15,700 14,800 Repairs 0,400 Loan from bank at 10% 17,000 17,000 Electricity 5,070 Loan interest owing 750 Cash banked 22,200 (98.270) Required: Balance on December 2018 12.530 a) Prepare a statement of affair to show Patsy Knight's capital on 1 January 2018. b) Prepare the Trade receivables Control Account The following referred to 2018 c) Prepare the Trade payables Control Account d) Extract a trial balance as at December 31, 2018. Bad debts written off 2,040 e) Prepare the Income Statement for the year ended 31 December, 2018 Goods withdrawn by Patsy Knight for own use 10.200 ( Statement of changes in owner's equity for the year ended 31 December, 2018. Credit note issued by Patsy Knight 6.040 g) Prepare a COMPARATIVE Statement of Financial Position as at 31 December, 2018. Discounts allowed by trade suppliers 4.040 h) Prepare a Statement of Cash Flow for the year ended 31 December, 2018 Discounts allowed to trade customers 8,000 Goods returned to trade suppliers 6,900 N 3
