ROUND-OFF YOUR ANSWER TO THE NEAREST ZERO DECIMAL PLACE!!!

The following information was extracted from JJ Traders books for 31 May 2019 financial year.

JJ requested you to assist with missing information. Use the information below to complete the

financial statements.

2 (a). 12 Marks

JJ Traders

Statement of Comprehensive Income as at 31 May 2019

Sales

Less: Cost of goods sold:

Opening Stock

11 200

? (a)

Add: Purchases ? (b)

177 338

Closing Stock 8 450

Cost of Sale

? (c)

Gross Profit

? (d)

Less: Expenses:

? (e)

Net Profit

? (f)

Additional information:

1. Sales margin - 20%

2. Net profit margin - 4%

Calculate the following:

COKE

Mark-up 25 Percent

Sales N$ 35 000

Inventory 01.03.2017 N$ 8 450

Inventory 28.02.2018 N$ 7 450

Calculate: Gross Profit, Purchases and Cost of Sale?

FANTA

Margin 20 Percent

Purchases N$ 42 400

Inventory 01.03.2017 N$ 12 600

Inventory 28.02.2018 N$ 18 200

Calculate: Gross Profit, Sales and Cost of Sale?

PEPSI

Sales N$ 68 500

Gross Profit N$ 22 800

Calculate: Percentage Mark-up, Margin and amount of Cost of Sale? 3 Marks

my Question 2

Ms Ji-Yong has not kept proper bookkeeping records, but she has kept notes in a personal note

form of her business transactions as at 31 May 2019.

The following transactions relate to financial year ended on 31 May 2018.

DR CR

Bank 18 200

Cash 1 400

Accounts Receivable and Payable 7 800 6 850

Motor Vehicle (Net Depreciation) 22 500

Furniture and Fittings at cost 16 700

Inventory - 31 May 2018 8 490

Prepaid Rent and Accrued Stationery Expense 510 150

During the financial year ended 31 May 2019, the following transactions occurred. Paid suppliers

N$ 26 400 by cheque and N$ 990 by cash. During the year received N$ 38 800 by cheque and N$

2 600 by cash. N$ 1 200 set-off was negotiated and granted. During year, customer refund

amount to N$ 500. Stationery expense paid during the year was N$ 8 700 and was paid by bank

cheque. Rent expense was also paid an amount of N$ 3 420 by cheque. The following expenses

was paid by cheque: Transport Expense N$ 750, Telephone Expense N$ 2 150 and General

Expense N$ 680, Staff Welfare N$ 500 and by cash Municipal Service N$ 380. Motor vehicle was

acquired on 01 June 2017 and is depreciated at 10% per annum, Furniture and fittings was also

acquired on 01 June 2018 and depreciated at 10% per annum and both on straight line method

and no scrap value.

At 01 June 2019, the following balances still exist in Ji-Yong books:

Page 14 of 18

DR CR

Bank 22 000

Cash 2 630

Rent Expense 540

Stationery Expense 300

Inventory - 31 May 2019 5 540

Drawings - 31 May 2019 16 300

Accounts Receivable and Payable 700 1 260

NB: WORKINGS ARE NOT REQUIRED

Required:

a) Prepare statement of comprehensive income as at 31 May 2019 19 Marks

b) Prepare statement of financial position as at 31 May 2019 29 Marks

Question 3

James Trading acquired a Motor vehicle on 01 September 2009 at N$ 258 800. This asset is

depreciated at 10% per annum using straight line method, residual value is equal N$ 5 000. James

Trading financial year ends on 30 November.

Required:

Depreciate the asset from acquisition date till 2019 financial year. Show each year depreciation

and accumulated depreciation.

my Question 4

Date Bought Date Sold

01 March 2019 15 at N$ 12.50 06 March 2019 20

05 March 2019 25 at N$ 12.80 15 March 2019 20

17 March 2019 40 at N$ 13.20 24 March 2019 20

23 March 2019 20 at N$ 13.60 30 March 2019 20

31 March 2019 12 at N$ 14.10

Selling price: N$ 20

Use the above information to calculate closing inventory that would be shown using below method

for 31 March 2019 financial year.

AVCO

Calculate purchases using AVCO

Calculate cost of sale using AVCO

Calculate sales using AVCO

Prepare trading statement as at 31 March 2019 06 Marks

my Question 5

The Eagle Theatre Club has been in existence for a number of years. Members pay annual

subscription fee of N$ 120, which allow them to join trips to professional productions at a reduced

rate. On the 31 May 2018, the club's assets and liabilities were as follows:

Motor vehicle valued at N$ 14 500, Office equipment valued at 2 800, Cash on hand N$ 80, Bank

balance N$ 3 100 (overdrawn), Saving with Swabou N$ 100, Subscription in arrears N$ 1 260,

Bar Creditor N$ 2 440 and Subscription received in advance N$ 200. The club is also running a

bar to raise more funds for the club activities.

The following information occurred throughout - 31 May 2019.

Receipts

Subscriptions received through the bank

- For year ended 31 May 2018 1 060

- For year ended 31 May 2019 12 900

- For year ended 31 May 2020 570

Bar Sales 9 800

Donation Received 1 600

Payments

Payment for bar supplies 5 200

Wages: Club Manager 6 300

Wages: Bar lady 1 220

Bar expense 810

Repairs theatre building 960

Theatre secretary expense 750

Transport expense for club members 460

Club telephone expense

The following information as at 31 May 2019

180

Bar Inventory 1 380

Drawings by members 11 400

Bar supplies - Owing 1 390

Depreciation expense: Motor Vehicle 600

Depreciation expense: Office equipment 250

REQUIRED

a) Calculate accumulated capital as at 31 May 2018 03 Marks

b)Prepare bar trading as at 31 May 2019

c)Prepare income and expenditure statement as at 31 May 2019

d) Prepare statement of financial position as at 31 May 2019

my Question 6

You are the Accountant of Mr. Bean Traders and you are given the following information relating

to 31 August 2018 Financial year.

Cash book closing balance as at 31 August 2018 Dr N$ 1 560

The following information was discovered after you closed off the cash book for 31 August 2018.

1. Client Jone deposited N$ 2 000 directly in the bank account

2. Stop order was paid directly from the bank account of N$4 500 to Ms Van Wyk

3. Service fee was charged against the bank account N$ 100

4. The bank credited the bank account with interest on the credit balance with N$ 500

5. Payment to Mr. Kop of N$ 750 was not on the bank statement

6. Payment to Ms. Ziczac of N$ 250 was not on the bank statement

7. A deposit of 31 August 2018 was not on the bank statement: N$ 400

Prepare the following as at 31 August 2018.

Cash book

Bank Reconciliation

Please assist with the questions it is for revision purposes not to copy for assignments