The services provided by financial institutions as providing financing to any specific sector of the economy such as real estate business are classified as.

1. Business allocation
2. Sector allocation
3. Economic allocation
4. Credit allocation

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The following are summaries of the cash book and bank accounts of Patsy Knight, a sole proprietor, who does not keep her books using the double entry system. Bank Summary Balance on I January 2018 Receipts: Receivables Cash bank 60.000 350,000 22,200 372.200 432,200 Payments: Trade payables Rent 310,000 10,100 30,400 90,200 8,050 800 Machinery Wages Insurance Customers (dishonoured cheque) Loan interest Balance on December 2018 (450,500)| (18.300) 950 Cash Summary Balance on 1 January 2018 Receipts 10,000 Cash sales Receivables 90,700 10,100 100,800 110,800 Payments: Drawings Repairs Electricity Cash banked Balance on December 2018 60,600 10,400 5,070 22,200 (98.270) 12.530 The following referred to 2018 Bad debts written off 2,040 Goods withdrawn by Patsy Knight for own use Credit note issued by Patsy Knight Discounts allowed by trade suppliers Discounts allowed to trade customers Goods returned to trade suppliers 10,200 6,040 4,040 8,000 6,900 Further checks revealed the following during 2018: During the financial year a trade debt of $10,200 owed by Linda Grayson was off set against the S20,000 owing to the same Linda Grayson a trade creditor. • In addition to the goods returned above, Jane Hutton, a cash sales customer returned goods during the financial year amounting to $7,000. Jane Hutton was repaid her $7,000 from the daily cash sales. This was not yet reflected in the business reconds • Patsy Knight grants a credit period of 30 days to customers. The closing trade receivables' balance includes a debt of $8.000 from Favela Brown. The goods were sold to Favela in November 2017. Favela went to the United States of America for a two (2) weeks' vacation in February 2018. On December 31, 2018 Favela was still in the USA. • Patsy Knight keeps a cash float of S10,00 for change in his retail outlet. Excess cash is deposited in the bank account and cash shortfall is taken from the bank. • The accounting fee for preparing the 2018 financial statements is estimated at $45,000. The fallowing additional information is ako available: 1 January 31 December 2018 S 9.400 40.400 2018 8.300 19,800 Inventories Machinery Rent paid in advanced Rent outstanding Trade reccivables Trade payables Loan from bank at 10% Loan interest owing 1,050 18,100 19.200 14.800 15.700 17.000 17,00 Required: a) Prepare a statement of affair to show Patsy Knight"s capital on 1 Jauary 2018. b) Prepare the Trade receivables Control Account c) Prepare the Trade payables Control Account d) Extract a trial balance as at December 31, 2018. e) Prepare the Income Statement for the year coded 3I December, 2018 ) Statement of changes in owner's equity for the year cndod 31 December. 2018, g) Prepare a COMPARATIVE Suatement of Financial Position as at 31 December. 2018. h) Prepare a Statement of Cash Flow for the ycar ended 31 December. 2018 The following are summaries of the cash book and bank accounts of Patsy Knight, a sole proprietor, who does not keep her books using the double entry system. Bank Summary Balance on I January 2018 Receipts: Receivables Cash bank 60.000 350,000 22,200 372.200 432,200 Payments: Trade payables Rent 310,000 10,100 30,400 90,200 8,050 800 Machinery Wages Insurance Customers (dishonoured cheque) Loan interest Balance on December 2018 (450,500)| (18.300) 950 Cash Summary Balance on 1 January 2018 Receipts 10,000 Cash sales Receivables 90,700 10,100 100,800 110,800 Payments: Drawings Repairs Electricity Cash banked Balance on December 2018 60,600 10,400 5,070 22,200 (98.270) 12.530 The following referred to 2018 Bad debts written off 2,040 Goods withdrawn by Patsy Knight for own use Credit note issued by Patsy Knight Discounts allowed by trade suppliers Discounts allowed to trade customers Goods returned to trade suppliers 10,200 6,040 4,040 8,000 6,900 Further checks revealed the following during 2018: During the financial year a trade debt of $10,200 owed by Linda Grayson was off set against the S20,000 owing to the same Linda Grayson a trade creditor. • In addition to the goods returned above, Jane Hutton, a cash sales customer returned goods during the financial year amounting to $7,000. Jane Hutton was repaid her $7,000 from the daily cash sales. This was not yet reflected in the business reconds • Patsy Knight grants a credit period of 30 days to customers. The closing trade receivables' balance includes a debt of $8.000 from Favela Brown. The goods were sold to Favela in November 2017. Favela went to the United States of America for a two (2) weeks' vacation in February 2018. On December 31, 2018 Favela was still in the USA. • Patsy Knight keeps a cash float of S10,00 for change in his retail outlet. Excess cash is deposited in the bank account and cash shortfall is taken from the bank. • The accounting fee for preparing the 2018 financial statements is estimated at $45,000. The fallowing additional information is ako available: 1 January 31 December 2018 S 9.400 40.400 2018 8.300 19,800 Inventories Machinery Rent paid in advanced Rent outstanding Trade reccivables Trade payables Loan from bank at 10% Loan interest owing 1,050 18,100 19.200 14.800 15.700 17.000 17,00 Required: a) Prepare a statement of affair to show Patsy Knight"s capital on 1 Jauary 2018. b) Prepare the Trade receivables Control Account c) Prepare the Trade payables Control Account d) Extract a trial balance as at December 31, 2018. e) Prepare the Income Statement for the year coded 3I December, 2018 ) Statement of changes in owner's equity for the year cndod 31 December. 2018, g) Prepare a COMPARATIVE Suatement of Financial Position as at 31 December. 2018. h) Prepare a Statement of Cash Flow for the ycar ended 31 December. 2018

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Sector allocation The services provided by financial institutions in terms of providing ... View the full answer