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BUS10250 Financial Accounting Semester B 2019-2020

Written Assignment 3

The following list of ledger balances is extracted from the books of A Store, a sole trader as at 31
December 20x9.
A Store

Trial Balance as at 31 December 20x9

$
Capital 300,000 s
Stock at 1 Jan 20x9 20,634
Purchases 56,231 Additional
Sales 153,697 infaormation:
Sales returns 3,518
Purchases returns (= return inwards) 5,095
Carriage inwards 1,483
Carriage outwards 2,310 1. Stock at 31
Discount allowed 2,548 December 20x9 was
Discount received 3,066 valued at $30,898.
Machinery (cost) 83,300
2. $1,418 was
Office equipment (cost) 67,300 further written
Cash at bank 184,341 off as bad debts
Debtors 42,940 at the end of the
Creditors 18,102 year ended 31
Bad debts 6,909 December 20x9.
Commission expense 17,322 (balance sheet
Salaries 38,082 debtors – 1418)
Insurance 3,457
Rates 1,774
General expenses 3,949
Provision for depreciation:
- Machinery at 1 January 20x9 37,730
-  Office equipment at 1 Jan 20x9 26,500
Bad debts recovered 524
Drawings 13,176
Provision for bad debts 4,560
3. At 31 December 20x9, there was insurance amount of $1,375 paid in advance. (current
assets:prepayment:-insurance1375)

4. At 31 December 20x9 there was $1,464 commission expense and $3,675 salaries accrued
respectively. (balance sheet liabilities open: accured :both +)

5. Depreciation on machinery was 10% per annum on cost and on office equipment was 5%
per annum on cost. There was no acquisition or disposal of fixed asset during the year ended
31 December 2009.

6. During the year, Anne had taken goods costing $1,656 for her own use. No record has
been made for this.

7. After review, Anne decided to remain the same amount of provision for bad debts for year
ended 31 December 2009 as the beginning of the year.

Required:

Prepare the income statement for Anne’s Store for the year ended 31 December 20x9 and a
balance sheet as at that date.

Note : Round up the figures to the nearest dollar.