You have been given the following information and asked to prepare the accounts for Salim for the year ended 30 April 2020 Trial Balance as at 30 April 2020 Debit f Credit f 93,520 120,500 30,500 23,500 64,523 32,895 52.110 623 920 Capital as at 1 May 2019 Plant & Equipment-cost Accumulated depreciation as at 1 May 2019 Inventory as at 1 May 2019 Trade receivables Cash Trade payables Sales Purchases of raw materials Light, heat and rent (Offices) Factory wages Salary costs (Office staff) Production overheads Suspense account Drawings 324,566 35,125 111,000 65 000 33. 111 500 56,120 833 445 833,445 revenue with the sale proceeds 2. Salim's depreciation policy is: Plant & equipment at 15% straight line, no residual value. Charge all depreciation to expenses, not cost of sales 3. Closing inventory is 23,890. 4. Salim received an invoice in May 2020 for repairs to an office window. The window was broken and repaired in April 2020. The repair cost 320 5. In March 2020, Salim received 500 from Clawley Ltd. This receivable was so overdue that Salim had assumed it had gone bad and had already written it off. He posted the receipt to cash but was unsure how to treat the other side of the entry so posted it to a suspense account, 6. On reviewing the aged debt listing, Salim sees there are two amounts over 90 days old and thinks these amounts should be provided for. The total of these two receivables is 450 Requirements Taking into account all the information provided a. Prepare a Profit or loss account for the year ended 30 April 2020 (17 marks) b. Prepare a Statement of financial position as at 30 April 2020 (15 marks) 8 9 i 12 i 11 10 1. On the 1 May 2019, Salim disposed of a piece of plant and machinery. The machine had originally cost 18,000 and had accumulated depreciation of 14,000. Sale proceeds were 3,000. Salim had credited revenue with the sale proceeds. 2. Salim's depreciation policy is: Plant & equipment at 15% straight line, no residual value. Charge all depreciation to expenses, not cost of sales. 3. Closing inventory is 23,890. 4. Salim received an invoice in May 2020 for repairs to an office window. The window was broken and repaired in April 2020. The repair cost 320. 5. In March 2020, Salim received 500 from Clawley Ltd This receivable was so overdue that Salim had assumed it had gone bad and had already written it off. He posted the receipt to cash but was unsure how to treat the other side of the entry so posted it to a suspense account 6. On reviewing the aged debt listing, Salim sees there are two amounts over 90 days old and thinks these amounts should be provided for. The total of these two receivables is 450. Requirements Taking into account all the information provided a. Prepare a Profit or loss account for the year ended 30 April 2020 (17 marks) b. Prepare a Statement of financial position as at 30 April 2020 (15 marks)
