Principles of Accounting: Incomplete and Single Records Example 1

////Principles of Accounting: Incomplete and Single Records Example 1

Principles of Accounting: Incomplete and Single Records Example 1

ZIMSEC O Level Principles of Accounting: Single entry and Incomplete records: Example 1

Question

On 1 May 20X8 Jenny Barnes, who is a retailer, had the following balances in her books:

  • Premises $70,000;
  • Equipment $8,200;
  • Vehicles $5,100;
  • Stock $9,500;
  • Trade debtors $150.

Jenny does not keep proper books of account, but bank statements covering the 12 months from 1 May 20X8
to 30 April 20X9 were obtained from the bank and summarised as follows:

$
Money paid into the bank:
Additional Capital8 000
Shop Takings96 500
Received From Debtors1 400
Payments made by cheque:
Paid for stock purchased70 500
Purchase of delivery van6 200
Vehicle running expenses1 020
Lighting and heating940
Sales assistant's wages5 260
Miscellaneous expenses962

It has been discovered that, in the year ending 30 April 20X9, the owner had paid into the bank all
shop takings apart from cash used to pay (i ) $408 miscellaneous expenses and (ii ) $500 per month
drawings.
At 30 April 20X9:

  • $7,600 was owing to suppliers for stock bought on credit
  • The amount owed by trade debtors is to be treated as a bad debt
  • Assume that there had been no sales on credit during the year
  • Stock was valued at $13,620
  • Depreciation for the year was calculated at $720 (equipment) and $1,000 (vehicles)

You are asked to prepare trading and profit and loss accounts for the year ended 30 April 20X9.

The solution to this Question can be found here

To access more topics go to the Principles of Accounting Notes.

By |2018-01-31T07:40:23+00:00January 30th, 2018|Notes, Ordinary Level Notes, Principles of Accounts Notes|Comments Off on Principles of Accounting: Incomplete and Single Records Example 1

About the Author:

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
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