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Xavier runs an advertising agency. His business has a financial year end of 31 July. The following information has been provided. $ Account balances at
Xavier runs an advertising agency. His business has a financial year end of 31 July. The following information has been provided. $ Account balances at 1 August 2019 Utilities payable Commission income receivable 682 500 During the year ended 31 July 2020 Payments made for utilities Commission received 8500 9000 Additional information 1 Included in the payments for utilities was the sum of $284 in respect of August 2020. 2 Commission income, $800, had not been received on 31 July 2020. REQUIRED (a) Calculate the amounts (showing all workings) to be included in the statement of financial performance of the business for the year ended 31 July 2020 for: () utilities expense [4] (ii) commission income [4] (b) State the accounting theory which is being applied when calculating the amounts for utilities expense and commission income for the year ended 31 July 2020. [1] (c) State two ways of internal control a business may use to safeguard cash balances. [2] (d) State two types of item paid or received directly through the bank for which a bank statement may be used as proof. [2]
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