You have been contacted by the owner of a Jewelery Retail shop, Magna Qarta , to prepare
Question:
You have been contacted by the owner of a Jewelery Retail shop, Magna Qarta , to prepare their accounts. You observe that they do not have a full set of accounts. However, you extract the following data from their records
Balances as at 31/12/2019
Property, plant and
equipment
555000
Accumulated Depreciation 135198
inventories 199800
Receivables 111000
Pepayments-Rates 4440
Bank 22200
Cash 6660
Creditors 44400
Electricity Accrued 2775
Balances as at 31/12/2020
inventories 376290
Receivables 133200
Pepayments-Rates 4995
Bank overdraft 172050
Cash 6660
Creditors 51060
Electricity Accrued 3330
The records show cash and
bank transactions as follow:
Cash Receipts Balance B/D 6660
Sales 166500
Cash Payments Deposit into bank 166500
Bank Receipts Balance B/D 22200
Accounts Receivable 1554000
5% Loan received 333000
Sale proceeds from sale of
motor van
91020
Cash banked 166500
Bank Payments
Accounts Payables 1221000
Rates 99900
Electricity 22200
Telephone 16650
Loan Interest 16650
Insurance 11100
Wages and Salaries 222000
Drawings 277500
Property, Plant and
Equipment
444000
Sundry Expenses 7770
ADDITIONAL INFORMATION
The loan was received on 1st January 2019 and depreciation for PPE is at 20% per annum Cost of motor van that was disposed off 111000
Accumulated Depreciation of the motor van that was disposed off 21090
Discount received during the year amounted to 22200
During the year the owner gifted a pair of earings to his daughter worth 22200
1. Prepare an Income Statement and a Statement of Financial Position for the 2020 Financial year
2. Use the information in 1. to fill the excel form.
Global Marketing Contemporary Theory Practice and Cases
ISBN: 978-0078029271
1st edition
Authors: Ilan Alon, Eugene Jaffe