A businessman has no double entry records of his transactions but has a cash book from which the following summary for the year ended 31 December 2019 has been prepared. December. $ Bank overdraft 31 December 2019 7,500 Receipts from trade debtors 90,000 Further capital introduced 30,000 Loan from X on 31 March on which interest is payable at the rate of 20,000 5 per cent a year Payments to creditors 35,000 General expenses 9,000 Wages 12,000 Drawings 22,000 On 3 December 2019, the business had Trade debtors for 70,000 Trade creditors for 50,000 Inventory valued at 30,000 Sundry non-current assets which had cost 60,000 Provision for depreciation 10,000 On 31 December 2020 there were Trade debtors for 85,000 Trade creditors 65,000 Inventory valued at 27,000 Sundry fixed assets which had cost 68,000 REQUIRED; Draft an income statement for the year ended 2020, and a balance sheet as at that date, providing for 5 per cent depreciation of the fixed assets on a straight- line basis.
A businessman has no double entry records of his transactions but has a
$
Bank overdraft 31 December 2019 7,500
Receipts from trade debtors 90,000
Further capital introduced 30,000
Loan from X on 31 March on which interest is payable at the rate of 20,000
5 per cent a year
Payments to creditors 35,000
General expenses 9,000
Wages 12,000
Drawings 22,000
On 3 December 2019, the business had
Trade debtors for 70,000
Trade creditors for 50,000
Inventory valued at 30,000
Sundry non-current assets which had cost 60,000
Provision for
On 31 December 2020 there were
Trade debtors for 85,000
Trade creditors 65,000
Inventory valued at 27,000
Sundry fixed assets which had cost 68,000
REQUIRED;
Draft an income statement for the year ended 2020, and a balance sheet as at that date, providing for 5 per cent depreciation of the fixed assets on a straight- line basis.
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