Question: Justin Teime is a sole trader who does not keep full accounting records. However, the following information about his business is available. At 1 October

Justin Teime is a sole trader who does not keep full accounting records. However, the following information about his business is available.

At 1 October 2020 At 30 September 2021

N$ N$

Fixed assets 30 000 40 000

Current assets 15 000 25 000

Current liabilities 12 000 18 000

Justins drawings during the year ended 30 September 2021 were N$10 000. He decides that fixed assets at 30 September 2021 should be depreciated.

REQUIRED

  1. Draw up Justins Statement of Affairs as at
  1. 1 October 2020

Statement of Affairs as at 1 October 2020

[4]

  1. 30 September 2021

Statement of Affairs as at 30 September 2021

[5]

(c) Calculate Justins profit or loss for the year ended 30 September 2021. You may use your answers to part (b). Show your workings.

[4]

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