- 20 Marks
FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)
Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry
Question
Mr. Ken Stevenson keeps single entry books of account. He had the following balances on 1 January, 2013:
| N |
|---|
| Inventory |
| Payables |
| Prepaid insurance |
| Bank overdraft |
| Furniture |
| Motor vehicles |
| Receivables |
| Borrowings |
The following information is extracted from his cash book in respect of the year ended 31 December 2013:
| DR N | CR N |
|---|---|
| Revenue | 279,500 |
| Receipt from trade receivables | 536,400 |
| 815,900 | 815,900 |
He had the following balances on 31 December 2013:
| N |
|---|
| Motor vehicles |
| Inventory |
| Furniture |
| Receivables |
| Payables |
| Borrowings |
Additional information:
(i) Interest on Borrowings to be accrued for at 5% per annum.
(ii) Bad debts of N12,600 are to be written off while 5% allowance is to be made on the net receivables at 31 December, 2013.
(iii) Depreciation is to be charged on the non-current assets at the rate of 10% per annum.
You are required to prepare:
a. Receivables control account (2 Marks)
b. Payables control account (2 Marks)
c. The opening capital (2 Marks)
d. Statement of Profit or Loss for the year ended 31 December 2013 (8 Marks)
e. Statement of Financial Position as at 31 December 2013 (6 Marks)
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