Ronald has not kept detailed accounts, other than the following summarised records of the bank transactions for the year ended 31st  December 2021:

Notes:

1. The loan was raised on 01 July 2021 with interest agreed at 10% per annum.
2. The Machinery is to be depreciated at 5% per annum.
3. The takings banked were after using $8,000 for personal drawings and $2,450 for buying goods for re-sale.
   
   During the year, Leong’s premises were burgled and a week’s takings were stolen from the safe, although Leong does not know the amount. The money has not been recovered and it was not insured.

Leong achieves a gross profit of 25% on his sales.

REQUIRED:

1. 1. An income statement for the year ended 31^st December 2021, showing your calculation of the cash stolen.
2. 2. A statement of financial position as at 31^st December 2021.

Transcribed Image Text:

Dr 2021 Jan-01 Balance b/d 2021 Takings (Note 1) Bank Account $ 19,500 152,000 Loan Proceeds (Note 2) 15,000 186,500 2021 Dec- 31 Trade Payables Rates Loan Interest Machinery (Note 3) Equipment Balance c/d CR $ 122,450 5,100 750 20,000 5,000 33,200 186,500 Dr 2021 Jan-01 Balance b/d 2021 Takings (Note 1) Bank Account $ 19,500 152,000 Loan Proceeds (Note 2) 15,000 186,500 2021 Dec- 31 Trade Payables Rates Loan Interest Machinery (Note 3) Equipment Balance c/d CR $ 122,450 5,100 750 20,000 5,000 33,200 186,500

Answer rating: 100% (QA)

SOLUTION To prepare the income statement for the year ended December 31 2021 and the statement of fi... View the full answer