Bill Smithson runs a second-hand furniture business from a shop which he rents. He does not keep complete accounting records, but is able to provide you with the following information about his financial position at 1 April 20X8: Inventories of furniture 3,210 Trade receivables 2,643, Trade payables 1,598, Motor vehicle 5,100, Shop fittings 4,200, Motor vehicle expenses owing 432 He has also provided the following summary of his bank account for the year ended 31 March 20X9: Balance at 1 Apr 20X8 2,420, Payments of trade creditors 22,177, Receipts from trade debtor 44,846 Electricity 1,090 Cash sales 3,921 Telephone 360 Rent 2,000 Advertising 1,430 Shop fittings 2,550 Insurance 946 Motor vehicle expenses 2,116 Drawings 16,743 Balance at 31 Mar 20X9 1,775 51,187 51,187 You required to find that the following must also be considered: Depreciation is to be written off the motor vehicle at 20% and off the shop Fittings at 10%, calculated on the book values at 1 April 20X8 plus additions during the year. At 31 March 20X9 motor vehicle expenses owing were $291 and insurance paid in advance was $177. A table brought for $300which Smithson resold during the year at cost, some wooden shop shelving cost $250, which Smithson used in building an extension to his house other balance at 31 March 20x9. Other balances at 31 March 20X9 were: Inventories of furniture 4,063 Trade debtor 4,012 Trade Creditor 2,445 Required: a) Prepare Smithson's Income Statement for the year ended 31 March 20X9
Bill Smithson runs a second-hand furniture business from a shop which he rents. He does not
keep complete accounting records, but is able to provide you with the following information
about his financial position at 1 April 20X8: Inventories of furniture 3,210 Trade receivables 2,643, Trade payables 1,598, Motor vehicle 5,100, Shop fittings 4,200, Motor vehicle expenses owing 432
He has also provided the following summary of his bank account for the year ended 31
March 20X9: Balance at 1 Apr 20X8 2,420, Payments of trade creditors 22,177,
Receipts from trade debtor 44,846 Electricity 1,090
Cash sales 3,921 Telephone 360
Rent 2,000
Advertising 1,430
Shop fittings 2,550
Insurance 946
Motor vehicle expenses 2,116
Drawings 16,743
Balance at 31 Mar 20X9 1,775
51,187
51,187
You required to find that the following must also be considered:
Fittings at 10%, calculated on the book values at 1 April 20X8 plus additions during the year.
At 31 March 20X9 motor vehicle expenses owing were $291 and insurance paid in advance was $177. A table brought for $300which Smithson resold during the year at cost, some wooden shop shelving cost $250, which Smithson used in building an extension to his house other balance at 31 March 20x9.
Other balances at 31 March 20X9 were:
Inventories of furniture 4,063
Trade debtor 4,012
Trade Creditor 2,445
Required:
a) Prepare Smithson's Income Statement for the year ended 31 March 20X9
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
