Question

Ms Ji-Yong has not kept proper bookkeeping records, but she has kept notes in a personal note form of her business transactions as at 31 May 2019. The following transactions relate to financial year ended on 31 May 2018. Bank CR 18 200 Cash DR 1 400 Accounts Receivable and Payable DR 7 800 CR 6 850 Motor Vehicle (Net Depreciation) DR 22 500 Furniture and Fittings at cost DR 16 700 Inventory - 31 May 2018 DR 8 490 Prepaid Rent and Accrued Stationery Expense DR 510 CR 150 During the financial year ended 31 May 2019, the following transactions occurred. Paid suppliers N$ 26 400 by cheque and N$ 990 by cash. During the year received N$ 38 800 by cheque and N$ 2 600 by cash. N$ 1 200 set-off was negotiated and granted. During year, customer refund amount to N$ 500. Stationery expense paid during the year was N$ 8 700 and was paid by bank cheque. Rent expense was also paid an amount of N$ 3 420 by cheque. The following expenses was paid by cheque: Transport Expense N$ 750, Telephone Expense N$ 2 150 and General Expense N$ 680, Staff Welfare N$ 500 and by cash Municipal Service N$ 380. Motor vehicle was acquired on 01 June 2017 and is depreciated at 10% per annum, Furniture and fittings was also acquired on 01 June 2018 and depreciated at 10% per annum and both on straight line method and no scrap value. At 01 June 2019, the following balances still exist in Ji-Yong books: Bank CR 22 000 Cash DR 2 630 Rent Expense DR 540 Stationery Expense CR 300 Inventory - 31 May 2019 DR 5 540 Drawings - 31 May 2019 DR 16 300 Accounts Receivable and Payable DR 700 CR 1 260

a) Prepare a statement of comprehensive income as at 31 May 2019
b) Prepare statement of financial position as at 31 May 2019

Answer 1

Ms Ji-Yong
Income statement
for the the year ended 31st May 2019
Particulars	Amt in N$
Revenue
Sale of Products	24,750
Refund to customer	-
Total Revenue	24,750
Expenses
Cost of Material Consumed	21,800
Rent	540
Stationery	-300
Discount to trade receivable	1200
Depreciation	4170
Transport Exps	750
Telephone exps.	2150
General Exps.	680
Staff Welfare	500
Municipal Service	380
Total Exps.	31,870
Net Profit	-7,120
Ms Ji-Yong
Income statement
for the the year ended 31st May 2019
Particulars	Amt in N$
Revenue
Sale of Products	24,750
Refund to customer	-
Total Revenue	24,750
Expenses
Cost of Material Consumed	21,800
Rent	540
Stationery	-300
Discount to trade receivable	1200
Depreciation	4170
Transport Exps	750
Telephone exps.	2150
General Exps.	680
Staff Welfare	500
Municipal Service	380
Total Exps.	31,870
Net Profit	-7,120

Ms Ji-Yong
Financial position
for the the year ended 31st May 2019
Particulars	Amt in N$
Assets
Motor Vehicle ( Net Depn)	20000
Furniture and fitting	15030
inventory	5540
Prepaid rent	3390
Prepaid Stationery Exps.	8250
Account receivable	700
Cash	2630
Total Assets	55540
Capital	32,280
Liability
Bank	22000
Account Payable	1260
Total Liaility	23260
Total Capital and liablity	55,540

Other Workings

	Jornal entry
1	Paid to supplier
	Supplier A/c Dr	27390
	To Bank		26400
	To Cash		990
2	Amount receipt
	Bank A/c	38800
	Cash A/c	2600
	Discount / rebat	1200
	To Trade Receivable		42600
3	Customer Refund amount
	TR	500
	To cash		500
4	Stationery Exps.	8700
	Rent A/c	3420
	Transport Exps	750
	Telephone exps.	2150
	General Exps.	680
	Staff Welfare	500
	Municipal Service	380
	To bank		16200
	To cash		380

1)	Sales working
	Opening stock	8490	dr
	Add: cost of Material Consumed	21800	dr
	Less: Closing	5540	cr
	Sale	24750
2)	Cost of Material Consumed working
	Trade payable opening balance	6850	Cr
	Less: Paid	27390	Dr
	Add: Closing balance	1260	Cr
	Cost of Material Consumed during the year	21800
3)	Depreciation
	Motor Car	2500
	Furniture and fixure	1670
	Total Depn	4170
4	Prepaid Rent Exps.
	Prepaid rent	510
	Add: Payment	3420
	Less: Trf. To P & l	540
		3390
5	Prepaid Stationery Exps.
	Opening Balance	150	Cr
	Add : Paid	8700	Dr
	Less: Shown in P & L	300	cr
	Prepaid Stationery Exps.	-8250	8250