Statement of affairs 1

3 Daksha is a trader. Her financial year ends on 31 January. She does not maintain a full set of
accounting records but was able to provide the following information at 1 February 2015.

$
Premises at cost 90 000
Fixtures and fittings at cost 22 000
Trade receivables 2 750
Trade payables 2 160
Other payables 330
Inventory 3 000
Bank 1 940 debit
Long-term loan 20 000
Capital 97 200

During the year ended 31 January 2016:

Capital introduced amounted to $12 000

Drawings amounted to $4200
Fixtures and fittings costing $5200 were purchased
A motor vehicle costing $8000 was purchased
A further long-term loan of $10 000 was obtained

In addition to providing this information, Daksha compared her assets and liabilities on
31 January 2016 with those on 1 February 2015 and found:

$
Trade receivables had increased by 1150
Trade payables had decreased by 210
Other payables amounted to 160
Other receivables amounted to 327
Bank balance had reduced by 2300
Petty cash amounted to 100

Inventory had increased by 10%.

On 31 January 2016 it was decided to:

1 Create a provision for doubtful debts of 3% of trade receivables.

2 Provide for depreciation of fixtures and fittings and the motor vehicle at 20% per annum
(based on cost of assets held at the end of the financial year).

(a) Prepare a statement of affairs at 31 January 2016 showing the total capital at that date.

Statement of affairs 0452/22/F/M/16 10

 Daksha
Statement of Affairs at 31 January 2016

$ $ $

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Statement of affairs 0452/22/F/M/16 11
(b) Prepare the capital account of Daksha for the year ended 31 January 2016 to show the profit
or loss for the year.

Daksha
Capital account

Date Details $ Date Details $

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Statement of affairs 0452/22/F/M/16 12

Statement of affairs 5
4 Virat is a trader. His financial year ends on 31 January. He does not maintain a full set of accounting
records. He was able to provide the following information at 1 February 2016.

$
Premises at cost 58 500
Fixtures and fittings at cost 9 400
Inventory 9 700
Trade payables 7 100
Trade receivables 8 120
Loan from A Singh 15 000
Bank overdraft 5 300

(a) Calculate Virat’s capital at 1 February 2016.

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During the year ended 31 January 2017:

Virat’s drawings amounted to $11 320.

Virat’s personal motor vehicle, valued at $15 200, was transferred into the business.
One third of the loan was repaid and it was agreed that the balance should be repaid in 2019.

Virat compared his assets and liabilities on 31 January 2017 with those on 1 February 2016 and
found:

Trade payables had increased by 6%

Trade receivables had increased by $3310
Inventory was valued at the selling price of $12 900 after a mark-up of 20%
Bank overdraft had increased by $3100
Cash in hand amounted to $100

On 31 January 2017 it was decided to:

Write off $130 as irrecoverable from the amount owed by trade receivables at that date.
Make a provision for doubtful debts of 2% of the remaining amount.

Provide for depreciation of fixtures and fittings at 20% per annum on cost.

Provide for depreciation of the motor vehicle at 25% on the valuation when transferred into
the business.

Maintain the premises at cost.

Statement of affairs 0452/22/M/J/17 6
(b) Prepare a statement of affairs at 31 January 2017 showing the total capital at that date.

Virat
Statement of Affairs at 31 January 2017

$ $ $

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Statement of affairs 0452/22/M/J/17 7
(c) Prepare the capital account of Virat for the year ended 31 January 2017 to show the profit or
loss for the year.

Virat
Capital account

Date Details $ Date Details $

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Statement of affairs 0452/22/M/J/17 8

Statement of affairs 9
4 Mariam’s financial year ends on 30 September. She does not maintain a full set of accounting
records, but was able to provide some information.

On 1 October 2018
$ $
Premises at cost 80 000 Capital ?
Fixtures and fittings at cost 7 800 Loan 21 000
Motor vehicle at cost 10 000 Trade payables 6 220
Inventory 6 350
Trade receivables 5 900
Bank balance 6 170

Mariam’s non-current assets have not been depreciated.

During the year ended 30 September 2019

Mariam’s drawings amounted to $3125

Mariam transferred $5000 of her own money into the business bank account
One-third of the loan was repaid and it was agreed that a further one-third would be repaid on
1 March 2020.

Comparing the assets and liabilities on 30 September 2019 with those on 1 October 2018 the
following differences were found:

inventory had decreased by $510

trade payables had increased by $880
the balance at bank had increased by 10%
trade receivables had increased to $6450
other payables amounted to $260

On 30 September it was decided to:

write off a debt of $150 as irrecoverable

create a provision for doubtful debts of 5% of the remaining trade receivables
provide for depreciation on the fixtures and fittings for the year at 15% per annum on cost
provide for depreciation on the motor vehicle for the year at 20% per annum on cost
maintain the premises at cost price.

Statement of affairs 0452/22/O/N/19 2

 (a) Prepare a statement of affairs at 30 September 2019 showing the total capital at that date.

Mariam
Statement of Affairs at 30 September 2019
$ $ $

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Statement of affairs 0452/22/O/N/19 3

(b) Prepare the capital account of Mariam for the year ended 30 September 2019 to show the
profit or loss for the year.

Mariam
Capital account

Date Details $ Date Details $

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Statement of affairs 0452/22/O/N/19 4