Name: _________________________

UNIT FOUR ACCOUNTING

2019 OUTCOME TWO ANSWER BOOK

Question 3: Tom’s Tents

3.1 Reconstruct the Accounts Receivable account to calculate the budgeted Receipts from Accounts
Receivable for the year ended 30 June 2020.

Accounts Receivable
2020 Cross reference $ 2020 Cross reference $
Balance 32 500 BANK 295 900
Sales/ 280 000 Sales Returns/ 14 000
GST Clearing 28 000 GST Clearing 1 400
Discount Expense 2 000
Allowance for 2 000
Doubtful Debts/
GST Clearing 200
Balance 25 000
340 500 340 500

Receipts from Accounts Receivable

(5 marks)

3.2 Reconstruct the Accounts Payable and Inventory accounts to calculate budgeted payments to
accounts payable

Inventory
2020 Cross reference $ 2020 Cross reference $
Balance 21 000 Cost of Sales 200 000
Cost of Sales 7 000 Inventory Loss 3 000
Bank 39 000 Drawings 5 000
Accounts Payable 156 000
Balance 15 000
223 000 223 000
 Accounts Payable
2020 Cross reference $ 2020 Cross reference $
BANK 163 400 Balance 5 500
Discount Revenue 6 000 Inventory/ 156 000
Balance 7 700 GST Clearing 15 600
177 100 177 100

Payments to Accounts Payable

(6 marks)

3.3 Calculate the budgeted cash to be paid for Prepaid Rent expense.

Balance at start 14 000 Balance at end 17 500

Rent Expense 26 500

Budgeted Prepaid Rent Expense Paid $_30 000_____

(2 marks)
3.5 Prepare the Operating Activities Section3 of the Budgeted Cash Flow Statement for the year
ended 30 June 2020.

Tom’s Tent
Budgeted Cash Flow Statement (extract) for the year ending 30 June 2020.
$ $
Cashflows from Operating Activities
Cash sales 120 000
GST Received 12 000
Receipts from Accounts Receivable 295 900 427 900
Payments to Accounts Payable (163 400)
Cash purchases of Inventory (39 000)
GST Paid (14 440)
GST Settlement (9 150)
General Expenses Paid (44 000)
Prepaid Rent paid (30 000)
Wages Expense Paid (46 500) (344 490)
Net cashflows from Operating Activities 81 410

(7 marks)