Incomplete record - Sole trader

Question 1
The following trial balance was extracted from the books of Ramsdale at the end of his first year of trading on
31 January 2022.
$ $
Equity 90,000
Premises at cost 70,000
Equipment at cost 9,300
Revenue 77,100
Purchases 62,030
Wages 10,140
Insurance 2,800
Advertising 1,120
Irrecoverable debts 90
Rates 2,160
General expenses 151
Discount received 43
Trade receivables 6,500
Trade payables 5,950
Cash drawings 5,200
Bank 3,602
173,093 173,093
Additional information
1. At 31 January 2022 inventory was valued at $4,100.
2. The insurance was paid for 14 months to 31 March 2022.
3. One third of the rates relates to Ramsdale’s private flat.
4. During the year Ramsdale took goods costing $580 for personal use. No entries have been made in the
accounting records.
5. An allowance for doubtful debts of 2% of trade receivables is to be created.
6. Equipment is to be depreciated at 20% per annum on cost.
Required
(a) Prepare the statement of profit or loss for the year ended 31 January 2022.
Ramsdale
Statement of profit or loss for the year ended 31 January 2022
$ $
Question 2
Zinchenko started a business on 1 October 2013. He did not maintain a full set of accounting records.
All goods are bought and sold on credit terms.
He provided the following information.
$
For the year ended 30 September 2014
Payments to credit suppliers 31,600
Receipts from credit customers 35,100
Discount allowed to credit customers 900
Returns to credit suppliers 2,100
Irrecoverable debts written off 100
Interest charged by credit supplier on overdue account 40
Carriage inwards 1,090
On 30 September 2014
Amount owed to credit suppliers 1,990
Amount owed by credit customers 3,950
Required
(a) Calculate the credit purchases for the year ended 30 September 2014.

Details $ Details $

(b) Calculate the credit sales for the year ended 30 September 2014.

Details $ Details $

Zinchenko did not value his inventory on 30 September 2014. His gross profit margin was 20%.
Required
(c) Calculate the value of the inventory on 30 September 2014 by means of an income statement (trading
account section).
Zinchenko
Income Statement (Trading Account Section) for the year ended 30 September 2014
$ $