Aa AEENT 4 4 A Paragraph Heading 1 Norma was prepare it towing us in UZU Styles DETAILS Sales Wages and Salaries Discount Allowed Loan Interest DR CR 615,000 68,000 6,200 15,000 Creditors Return Outwards Rent Received Purchases Debtors Provision for Bad Debts Telephone Charges Bank 50,500 8,500 14,000 310,200 54,350 3,200 12,000 79,300 Cash 18,200 Land and Building 220,000 Motor Vehicle 290,000 Provision for Depreciation on Motor Vehicle 24.000 Machinery and Equipment 132.000 Provision for Depreciation on Machinery & Equipment 13,200 Capital 250,000 Drawings 9,000 10% Loan 150,000 Building Repairs 30,000 Commission Received 50.000 Opening Stock 34,600 Insurance Office Supplies Accessibility Imestigate 21,500 36.650 G Paragraph Styles Capital 250,000 Drawings 9,000 10% Loan 150,000 Building Repairs 30,000 Commission Received I 50,000 Opening Stock 34,600 Insurance Office Supplies 21,500 36,650 1.257.700 1.257.700 Additional notes: a The stock at the end of the year was valued at $64,000 b. The communion was prepaid by $3,000 c. The insurance was owing by $1500 d. The provision for bad debts is to be revised to 10% of the debtors e. Provide for depreciation as follows Machinery and Equipment 10% Motor Vehicle Reducing Batince 10% Straight Line -A- Paragraph Heading 1 Normal Styles Required: I 1. Prepare the statement of profit and loss for the year ending December 31, 2017 as well as the statement of financial position as December 31, 2017 (40 marks) 2 Jimmy Cliff enquired why was there separate entries for Building Repairs as well as Land and Building in the books Has consultant Cavette Francis pointed out that a capital expenditure and a revenue expendinure must be recorded separately. Briefly explain the terms Capital Expenditure and Revenue Expenditure (3 marks) 3 Jimmy Cliff was presented the following business proposal Join forces with Perry Henzell and Cal Bradshaw, and convert the business ante a partnership to be called The Hardes They Come With this conversion the members would be guided the Parthenship Act and the Partnership Deed a State two antages and two duaantages of a parmiership shen compared to a sole trader (4 marks) b. plasma Act and the Farmenbip Deed (3 marks) P Search (AC) References Mailings Review View Help AAAAE-E-BALS A- e-A- Paragraph Heading 1 Normal No Spacing Question Two Connie Francis is the owner of The Jetsetter an organic health food stam. The trial balance failed to agree, and the difference was posted to a spouse account. The Income Statement then showed a net less $77,250A tocant ad revealed the following accounting errors a) The Cloung Stock valued at $44,500 was taken as $64,500 Cashment of $22.500 for office expenses was consectly posted in the cash account but was not posted in the expense account The Opening Stack valued at $55,000 was take a Balding repairs paid $70,000 by cheque was 595,000 recorded is the books The loan repayment of $25,000 was pad by dege and comported in the cbbock, but debited to the loan interest account A fand sales of $7,000 posted the les leges acc Be of $30,000 paid by cheque was ded as De Bank 30,000 and C este $30,000 Sins nachireng 5000 gachased by the same t cabock, but was Deband to the Machinery Repas accou Respired the Omed all the O P Search (Al-Q References Mailings Revine View Help AAAA-E-L A-PA- Fagraph Heading Normal No Spacing about Narations NOT required (15 marks) 2 Wip the Supete Account (4 marks) 3 at the Stent of Adamed Net lcm 4 State and hoefly plan the cons incumed (12 marks) (7 marks) (43 () () and 00 above 5 Cane Francia was also conced when she noted that the balance is the cathock was not the same as fut in the bank statement for the composting period Ang tuts could have boos hasking mon, Connie Franca ca Sa Cr Neale be literal Auditor to the Male reported that the diffemer te bilas was de protec added cheques, ding onder tack charge th weed cheques Code Trachs Diced Chegue Onder Back Charges Us Clas END OF ASSESSMENT 2) Critney Margar Pine