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AccIncomplete Record Answer 2

The document presents financial statements for Mr. Kaybee, including a statement of affairs, an income statement for the year ended December 31, 2017, and a statement of financial position as of the same date. Key figures include total assets of $179,550, net profit of $52,272, and total liabilities of $62,982. The financial data reflects the company's performance and position over the specified period.

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19 views3 pages

AccIncomplete Record Answer 2

The document presents financial statements for Mr. Kaybee, including a statement of affairs, an income statement for the year ended December 31, 2017, and a statement of financial position as of the same date. Key figures include total assets of $179,550, net profit of $52,272, and total liabilities of $62,982. The financial data reflects the company's performance and position over the specified period.

Uploaded by

mangenatafadzwa2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MR KAYBEE

Incomplete Record 2 solution

a) Statement of affairs at the beginning of the year


Assets $ $
Machine 94 500
Inventory 45 360
Trade receivables 34 188
Bank 5 502
Total assets 179 550

Less current liabilities


Trade payables 18 060
Accrued rent 2 730
Accrued general expenses 2 520
23 310
Capital at 1 January 2017 156 240

b) Income statement for the year ended 31 December 2017


$ $ $
Sales 532 665
Less cost of sales
Opening inventory 45 360
Purchases 373 914
Less: Return outwards 1 500
Drawings 1 200 371 214
416 574
Closing inventory (51 765) 364 809
Gross profit 167 856
Other income: Discount received 13 734
Gross income profit 181 590

Less expenses
Wages 56 007
Rent 18 270
Electricity 4 200
General expenses 34 776
Discount allowed 6 615
Depreciation of machine 9 450 129 318
Net profit 52 272

For a service that gives you Honour, Dignity & Comfort contact us: +263 71 818 1255 [app]
MR KAYBEE

c) Statement of financial position as at 31 December 2017


Cost Acc Dep NBV
Non current assets $ $ $
Machinery 115 500 9 450 106 050

Current assets
Inventory 51 765
Trade receivables 39 060
Prepaid electricity 1 050
91 875

Current liabilities
Trade payables 19 404
Accrued rent 5 250
Accrued general expenses 3 150
Bank overdraft 1 089 28 893
62 982
169 032
Financed by:
Capital 156 240
Add: Net profit 52 272
208 512
Less: Drawings 39 480
169 032

Tutorial notes and workings:

Trade receivables total account


Balance b/d 34 188 Bank 171 402
Credit sales (Balancing figure) 182 889 Discount allowed 6 615
Balance c/d 39 060
217 077 217 077

Total sales = credit sales + cash sales


= 182 889 + 349 776
= $532 665

Trade payables total account


Discount received 13 734 Balance b/d 18 060
Bank 357 336 Credit purchases 373 914
Returns outwards 1 500
Balance c/d 19 404
391 974 391 974

For a service that gives you Honour, Dignity & Comfort contact us: +263 71 818 1255 [app]
MR KAYBEE

Bank account
Balance b/d 5 502 Payment to trade payables 357 336
Trade receivables 171 402 Wages 56 007
Cash sales 349 776 Rent 15 750
Balance c/d (Balancing figure) 1 089 Electricity 5 250
General expenses 34 146
Machinery 21 000
Drawings (34 600 + 3 600) 38 280
527 769 527 769

Rent (accrued) account


Cash 15 750 Balance b/d 2 730
Balance c/d 5 250 Income statement 18 270
21 000 21 000

Electricity (prepaid) Account


Cash 5 250 Income statement 4 200
Balance c/d 1 050
5 250 5 250

General expense account


Cash 34 146 Balance b/d 2 520
Balance c/d 3 150 Income statement 34 776
37 296 37 296

Total Drawings = 34 680 + 1 200 + 3 600 (300 x 12 months)

= $39 480

Depreciation = 106 050 – 94 500

$11 550

Remember that an accrual is a current liability and so it has got credit balance b/d and vice
versa.

For a service that gives you Honour, Dignity & Comfort contact us: +263 71 818 1255 [app]

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