The following is a list of balances from the books of Ahmad Trading, at 31 December...

    

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The following is a list of balances from the books of Ahmad Trading, at 31 December 2019: Credit Debit $ $ 320,000 Sales Trade Debtors Trade Creditors Stock, 1 Jan 2019 Returns In Returns Out Purchases Discounts Received Discounts Allowed Rent Salaries and Wages Motor Vehicle Expenses Motor Vehicles, at cost Provision for Depreciation, 51,000 31,000 4,250 260,000 3,456 6,600 59,789 6,543 29,000 61,000 3,250 1,234 Motor vehicles, 1 Jan 2019 Fixtures and Fittings, at cost Provision for depreciation, Fixtures and Fittings 1 Jan 2019 Sundry Expenses Telephone Bank Overdraft Cash Petty Cash Capital Rent Receivable 11,000 987 2,345 560 61 466,591 5,800 1,100 6,500 67,057 650 466,591 Additional information available: Stock at 31 December 2019 - $ 19,000 Depreciation for the year ended 31 December 2019 has not yet been provided. Motor vehicles should have a charge of 20% per annum on cost, and Fixtures and Fittings at 10% per annum on reducing balance. (1) (2) (3) Sundry expenses - prepaid $100 Telephone - accrual $200 (4) (5) (6) REQUIRED: (a) (b) Rent accrued - $600 Overtime, worked in December 2019, but not paid until January 2020 - $999 Prepare the Income Statement for Ahmad Trading for the year ended 31 December 2019. (17 marks) Explain the following concepts/conventions: (1) (ii) Materiality Going concern Prudence Historical cost (iii) (iv) (v) Accruals The following is a list of balances from the books of Ahmad Trading, at 31 December 2019: Credit Debit $ $ 320,000 Sales Trade Debtors Trade Creditors Stock, 1 Jan 2019 Returns In Returns Out Purchases Discounts Received Discounts Allowed Rent Salaries and Wages Motor Vehicle Expenses Motor Vehicles, at cost Provision for Depreciation, 51,000 31,000 4,250 260,000 3,456 6,600 59,789 6,543 29,000 61,000 3,250 1,234 Motor vehicles, 1 Jan 2019 Fixtures and Fittings, at cost Provision for depreciation, Fixtures and Fittings 1 Jan 2019 Sundry Expenses Telephone Bank Overdraft Cash Petty Cash Capital Rent Receivable 11,000 987 2,345 560 61 466,591 5,800 1,100 6,500 67,057 650 466,591 Additional information available: Stock at 31 December 2019 - $ 19,000 Depreciation for the year ended 31 December 2019 has not yet been provided. Motor vehicles should have a charge of 20% per annum on cost, and Fixtures and Fittings at 10% per annum on reducing balance. (1) (2) (3) Sundry expenses - prepaid $100 Telephone - accrual $200 (4) (5) (6) REQUIRED: (a) (b) Rent accrued - $600 Overtime, worked in December 2019, but not paid until January 2020 - $999 Prepare the Income Statement for Ahmad Trading for the year ended 31 December 2019. (17 marks) Explain the following concepts/conventions: (1) (ii) Materiality Going concern Prudence Historical cost (iii) (iv) (v) Accruals

Answer rating: 100% (QA)

Answer 1Income Statement of the Ahmad Trading for the year ended 31st December 2019 Particulars Amount Amount Income Sales 320000 Less Sales Returns 4250 Less Discount Allowed 3456 Rent Receivable 650 ... View the full answer