Incomplete Record - Question

[INTRODUCTION TO FINANCIAL ACCOUNTING] ACCOUNTING]

INCOMPLETE ACCOUNTS

Question 1

Beckham owns a small store and does not keep a full set of accounts. The following information has been obtained in respect of the year ended 31 December 20x4. Summary of Bank Account:

RM Balance b/d

RM

4,820 Sundry expenses

Receipts from trade receivables

94,608 Trade payables

1,560 76,040

Insurance

2,640

Rent

5,200

Equipment

4,000

Drawings Balance c/d

7,200 2,788

99,428

99,428

Beckham made cash sales totaling RM13,336 and used this to pay the following: RM Wages and salaries 12,427 Sundry expenses 106 Cash purchases 803 He took for his own use RM260 worth of goods purchases during the year. A discount of RM87 had been allowed to Beckham for prompt payment of a trade payables account. The following information is also available:

Equipment Rent accrued Trade receivables Trade payables Insurance prepaid Inventory

1 January 20x4 RM 8,400 400 7,362 5,928 420 8,428

31 December 20x4 RM 9,920 9,900 6,836 480 11,280

Beckham has indicated that RM120, included in the insurance payment during the year, for his personal insurance. Required:

Prepare the Income Statement for Beckham for the year ended 31 December 20x4 and the Statement of Financial Position for the same date. (Total : 20 marks)

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[INTRODUCTION TO FINANCIAL ACCOUNTING]

INCOMPLETE ACCOUNTS

Question 2

Alice is a sole trader. She did not maintain her accounting records properly. The following information was extracted from the bank account for the year ended 31/12/03.

Balance at 1/1/03 Cash sales Trade receivable

RM 5,600 20,500 71,400

Trade payable Rental Drawings Insurance Purchase of computer Salary Electricity

RM 51,200 8,800 13,000 5,000 8,000 3,750 6,000

The following information was obtained from the books of Alice:

Computer (NBV) Trade payable Trade receivable Inventory at cost Prepaid insurance Accrued salary Drawings-goods Drawings-cash sales received

31/12/02 RM 6,250 7,150 3,600 500 300 -

31/12/03 RM 7,000 5,800 9,700 3,800 800 550 1,250 3,000

Required:

(a)

Calculate Alice’s capital account at 1 Jan 2003. (2 marks)

(b)

Prepare Income Statement for the year ended 31 December 2003. (10 marks)

(c)

Prepare Statement of Financial Position as at 31 December 2003. (8 marks) (Total : 20 marks)

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[INTRODUCTION TO FINANCIAL ACCOUNTING]

INCOMPLETE ACCOUNTS

Question 3

Manjit is a sole trader. She did not maintain her accounting records properly. The following information was extracted from the bank account for the year ended 31/12/06 RM Balance at 1/1/06 15,800 Cash banked 17,800 Trade receivable 150,000

RM Trade payable 90,000 Insurance 8,000 Drawings 12,000 Sundry expenses 12,500 Purchase of computer 7,000 Salary 30,000 Balance c/d 24,100

The following information was obtained from the books of Manjit:

Computer (NBV)cost 20,000 Trade payable Trade receivable Inventory at cost Cash in hand Bank Insurance prepaid Provision for bad debts

1/1/06 RM 15,000 12,500 17,500 12,000 60 15,800 200 800

31/12/06 RM ? 66,484 18,200 17,000 70 24,100 1,000 600

1. Discounts allowed to customers totaled RM8,500 and discounts received from suppliers were RM5,600. 2. Bad debts of RM2,000 were written off during the year. 3. Depreciation on the computer is charged at 20% on cost of asset s held at the year end. 4. The following payments were made from cash which had been received from sales before  paying into the bank: (i) (ii) (iii) (iv)

Drawings Purchases Salaries Sundry expenses

RM5,000 RM15,000 RM350 RM120

Required: (a) (b) (c)

Calculate Manjit’s capital account at 1 Jan 2006. Prepare Income Statement for the year ended 31 December 2006 Prepare Statement of Financial Position as at 31 December 2006

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[INTRODUCTION TO FINANCIAL ACCOUNTING]

INCOMPLETE ACCOUNTS

Question 4

The following summary for the year ended 31 March 20x9 has been prepared from the Cash Book of Beckham, a sports shop retailer. Receipts Cash Bank  Balances b/fwd 172 3,246 Cash sales 640 8,777 Trade receivables 96 38,194 Cash from bank 693 Gift from a relative 9,000 Sale proceeds of motor vehicle 750 (NBV 500) Payments Trade payables 25,500 Wages 8,350 General expenses 82 7,498 Cash from bank 693 Drawings 800 11,600 Purchase of motor vehicle 8,999 Beckham did not keep a full set of accounting records, but the following additional information has been obtained: (1) Motor vehicle valued at Inventory valuation Trade receivables General expenses - prepaid - accrued Accrued wages Trade payables

1 April 20x8 500 1,650 3,600 300 85 700 2,200

31 March 20x9 8,000 2,700 3,850 375 99 650 4,995

(2)

Beckham withdrew, from goods purchased during 20x9 and for his own personal use, items costing RM700.

(3)

The Cash Book summary does not include bank charges of RM75 debited to Beckham‘s Account by the bank on 31 March 20X 9.

(4)

Payments for rent, RM500, and private traveling costs, RM1,000, had been deducted from cash sales prior to banking.

Required:

(a) (b) (c)

Calculation of Beckham’s Capital Account balance on 1 April 20x8. Income Statement for year ending 31 March 20x9. Statement of Financial Position of Beckham at 31 March 20x9.

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