Goovy Trading Attorneys has provided you with the following information which relates to her business at...

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Goovy Trading Attorneys has provided you with the following information which relates to her business at 30 September 2021 Rent income N$ 11 000, Salaries N$ 22 300, Bank Balance N$ 122 000, Furniture N$ 31 000, Debtors N$ 7000, Insurance N$ 1 100, Telephone N$ 3 600, Purchases N$ 10 200, Stock at the beginning of the month N$ 15 500 Traveling Expenses N$ 5 600, Stationery N$ 350, Advertisements N$ 2 370, Sales N$ 100 000, Bank charges N$250, Closing inventory N$ 11 420, Interest on Favourable bank balance N$ 12 000; Commision earned N$ 960; Debtors N$ 18 000; Additional information: 1. Included in the insurance premium is a pre-payment of N$ 100. 2. The amount for bad debts during the period under review stands at N$ 950. Required: Prepare Income Statement of Goovy Trading Attorneys for the year ended 30 September 2021 Question 2 1. Your trust creditors as at 31 January 2022 total N$ 880 000. An examination of these trust creditors are made up as following: 2. (a) Your client Mrs Gertze has instructed you to invest the sum of N$ 400 000 (which you hold in trust) in an interest bearing account for her benefit, pending transfer of an immovable property. (b) You invest the N$ the 400 000 with the Sussie Bank. Page 17 of 19 /20 Marks (c) When you close the account you receive a cheque of N$ 404 400 3. (a) Your client Mr Handsome instructs you to invest her N$ 300 000 (which you hold in trust) with Sunshine Bank (b) You invest aforementioned funds with Sunshine Bank and retain the documentation in your client's file. 4. (a) You decide to invest the sum of N$ 180 000 of your surplus trust funds in an interest bearing account with Crazy Bank. (b) When you close the account you receive a cheque for N$ 183 000. Required: 1) Reflect all the aforesaid transactions in the bank account and trust ledgers. 2) Reconcile the list of creditors with trust cash held. Total: 50 Marks /30 Marks Goovy Trading Attorneys has provided you with the following information which relates to her business at 30 September 2021 Rent income N$ 11 000, Salaries N$ 22 300, Bank Balance N$ 122 000, Furniture N$ 31 000, Debtors N$ 7000, Insurance N$ 1 100, Telephone N$ 3 600, Purchases N$ 10 200, Stock at the beginning of the month N$ 15 500 Traveling Expenses N$ 5 600, Stationery N$ 350, Advertisements N$ 2 370, Sales N$ 100 000, Bank charges N$250, Closing inventory N$ 11 420, Interest on Favourable bank balance N$ 12 000; Commision earned N$ 960; Debtors N$ 18 000; Additional information: 1. Included in the insurance premium is a pre-payment of N$ 100. 2. The amount for bad debts during the period under review stands at N$ 950. Required: Prepare Income Statement of Goovy Trading Attorneys for the year ended 30 September 2021 Question 2 1. Your trust creditors as at 31 January 2022 total N$ 880 000. An examination of these trust creditors are made up as following: 2. (a) Your client Mrs Gertze has instructed you to invest the sum of N$ 400 000 (which you hold in trust) in an interest bearing account for her benefit, pending transfer of an immovable property. (b) You invest the N$ the 400 000 with the Sussie Bank. Page 17 of 19 /20 Marks (c) When you close the account you receive a cheque of N$ 404 400 3. (a) Your client Mr Handsome instructs you to invest her N$ 300 000 (which you hold in trust) with Sunshine Bank (b) You invest aforementioned funds with Sunshine Bank and retain the documentation in your client's file. 4. (a) You decide to invest the sum of N$ 180 000 of your surplus trust funds in an interest bearing account with Crazy Bank. (b) When you close the account you receive a cheque for N$ 183 000. Required: 1) Reflect all the aforesaid transactions in the bank account and trust ledgers. 2) Reconcile the list of creditors with trust cash held. Total: 50 Marks /30 Marks Goovy Trading Attorneys has provided you with the following information which relates to her business at 30 September 2021 Rent income N$ 11 000, Salaries N$ 22 300, Bank Balance N$ 122 000, Furniture N$ 31 000, Debtors N$ 7000, Insurance N$ 1 100, Telephone N$ 3 600, Purchases N$ 10 200, Stock at the beginning of the month N$ 15 500 Traveling Expenses N$ 5 600, Stationery N$ 350, Advertisements N$ 2 370, Sales N$ 100 000, Bank charges N$250, Closing inventory N$ 11 420, Interest on Favourable bank balance N$ 12 000; Commision earned N$ 960; Debtors N$ 18 000; Additional information: 1. Included in the insurance premium is a pre-payment of N$ 100. 2. The amount for bad debts during the period under review stands at N$ 950. Required: Prepare Income Statement of Goovy Trading Attorneys for the year ended 30 September 2021 Question 2 1. Your trust creditors as at 31 January 2022 total N$ 880 000. An examination of these trust creditors are made up as following: 2. (a) Your client Mrs Gertze has instructed you to invest the sum of N$ 400 000 (which you hold in trust) in an interest bearing account for her benefit, pending transfer of an immovable property. (b) You invest the N$ the 400 000 with the Sussie Bank. Page 17 of 19 /20 Marks (c) When you close the account you receive a cheque of N$ 404 400 3. (a) Your client Mr Handsome instructs you to invest her N$ 300 000 (which you hold in trust) with Sunshine Bank (b) You invest aforementioned funds with Sunshine Bank and retain the documentation in your client's file. 4. (a) You decide to invest the sum of N$ 180 000 of your surplus trust funds in an interest bearing account with Crazy Bank. (b) When you close the account you receive a cheque for N$ 183 000. Required: 1) Reflect all the aforesaid transactions in the bank account and trust ledgers. 2) Reconcile the list of creditors with trust cash held. Total: 50 Marks /30 Marks Goovy Trading Attorneys has provided you with the following information which relates to her business at 30 September 2021 Rent income N$ 11 000, Salaries N$ 22 300, Bank Balance N$ 122 000, Furniture N$ 31 000, Debtors N$ 7000, Insurance N$ 1 100, Telephone N$ 3 600, Purchases N$ 10 200, Stock at the beginning of the month N$ 15 500 Traveling Expenses N$ 5 600, Stationery N$ 350, Advertisements N$ 2 370, Sales N$ 100 000, Bank charges N$250, Closing inventory N$ 11 420, Interest on Favourable bank balance N$ 12 000; Commision earned N$ 960; Debtors N$ 18 000; Additional information: 1. Included in the insurance premium is a pre-payment of N$ 100. 2. The amount for bad debts during the period under review stands at N$ 950. Required: Prepare Income Statement of Goovy Trading Attorneys for the year ended 30 September 2021 Question 2 1. Your trust creditors as at 31 January 2022 total N$ 880 000. An examination of these trust creditors are made up as following: 2. (a) Your client Mrs Gertze has instructed you to invest the sum of N$ 400 000 (which you hold in trust) in an interest bearing account for her benefit, pending transfer of an immovable property. (b) You invest the N$ the 400 000 with the Sussie Bank. Page 17 of 19 /20 Marks (c) When you close the account you receive a cheque of N$ 404 400 3. (a) Your client Mr Handsome instructs you to invest her N$ 300 000 (which you hold in trust) with Sunshine Bank (b) You invest aforementioned funds with Sunshine Bank and retain the documentation in your client's file. 4. (a) You decide to invest the sum of N$ 180 000 of your surplus trust funds in an interest bearing account with Crazy Bank. (b) When you close the account you receive a cheque for N$ 183 000. Required: 1) Reflect all the aforesaid transactions in the bank account and trust ledgers. 2) Reconcile the list of creditors with trust cash held. Total: 50 Marks /30 Marks

Answer rating: 100% (QA)

Question 1 Income Statement of Goovy Trading Attorneys Income Sales N 100000 Commission Earned N 960 ... View the full answer