Statement of Financial Position as at March 31, 2010
$ $
March 31, 2010 March 31, 2009
ASSETS
Non-current assets 4,200 3,700
Current Assets
Inventory 1,500 1,600
Accounts receivable 2,200 1,800
3,700 3,400
Total Assets 7,900 7,100
EQUITY & LIABILITIES
Share capital 1,200 1,200
Retained earnings 2,800 1,900
Total Equity 4,000 3,100
Non-Current liabilities
Long term loan 1,600 2,050
Current Liabilities
Accounts payable 1,250 1,090
Taxation 895 655
Bank overdraft 155 205
Total Current liabilities 2,300 1,950
Total Equity & Liabilities 7,900 7,100
ABC Co.,
Income Statement for the year ended March 31, 2010
$ $
Revenue 5,270
Cost of sales 2,000
Gross profit 3,270
Operating expenses 1,000
Depreciation 970
1,970
Operating profit 1,300
Interest expense 250
Profit before tax 1,050
Taxation 450
Profit for the year 600
Additional information:
(i) During the year ended March 31, 2010 the company purchased property plant & equipment Of $870.
(ii) No interest was owed at the end of the year.
(iii) Dividend paid for the year ending March 31, 2010 is $300.
You are required to prepare the Statement of Cash Flow for ABC Co., for the year ended March 31, 2010 as per IAS7.
Question 2
The financial year of The Better Trading Company ended on 30 November 2017. You have been asked to prepare a Total Accounts Receivable Account and a Total Accounts Payable Account in order to produce end-of-year figures for Accounts Receivable and Accounts Payable for the draft final accounts. (20 marks)
You are able to obtain the following information for the financial year from the books of original entry:
$
Sales – cash 344,890
– credit 268,187
Purchases – cash 14,440
– credit 496,600
Total receipts from customers 600,570
Total payments to suppliers 503,970
Discounts allowed (all to credit customers) 5,520
Discounts received (all from credit suppliers) 3,510
Refunds given to cash customers 5,070
Balance in the sales ledger set off against balance in the purchases ledger 70
Bad debts written-off 780
Increase in the allowance for doubtful debts 90
Credit notes issued to credit customers 4,140
Credit notes received from credit suppliers 1,480
According to the audited financial statements for the previous year accounts receivable and accounts payable as at 1 December 2016 were $26,555 and $43,450 respectively.
Required:
Draw up the relevant Control Accounts entering end-of-year totals for accounts receivable and accounts payable.
