Anne York is a sole trader who started the business of buying and selling furniture in Brighton on the 1st of October 2021. She is going to prepare accounts to 31st of September 2021. She contributed to the business with £10,000 in the Bank, £4,800 cash, 45,000 flat and 12,000 Car. The transactions during the month are as follows: 2/10 Purchased furniture £5400 for sale on credit from Home Ltd 4/10 She bought a computer for £800 and a printer £200 from a local shop in London and paid by cheque. 5/10 Sold goods for £ 2800 and received the money via Bank account 12/10 Paid in Cash £110 for repairing printer 18/10 Part of furniture returned to Home Ltd £250 21/10 The owner received rent £800 for flat and deposited it to the bank account 23/10 Sold goods to Rayan £2100; from this amount £1800 cash received immediately and the rest remains on credit. 23/10 Sold goods of £700 to David and received cash 24/10 Bought a new Laptop for business use by issuing a cheque £1700 26/10 Paid the month's wages to the part-time shopkeeper by cheque £820 30/10 The owner rented an office place in a Business Park near the London on 1" October and paid rent by cheque £850 31/10 The owner has also paid £ 1200 from the business bank account to book a hotel and flight in Sotland for her holiday. 31/10 £150 Cash received from Rayan. Required: a) Write double entry record the transactions in T-accounts b) Balance the accounts and bring down an opening balance c) Extract a Trial balance as at 31st October 2021 d) Prepare an Income Statement for the period ended 31st October 2021 13 marks The closing inventory is £ 320 e) Prepare a Statement of Financial Position as at 31st October 2020 f) Write a brief letter to Linda explaining what drawings are concerning small business and answering her query concerning her holiday.
Anne York is a sole trader who started the business of buying and selling furniture in Brighton on the 1st of October 2021. She is going to prepare accounts to 31st of September 2021. She contributed to the business with £10,000 in the Bank, £4,800 cash, 45,000 flat and 12,000 Car. The transactions during the month are as follows: 2/10 Purchased furniture £5400 for sale on credit from Home Ltd 4/10 She bought a computer for £800 and a printer £200 from a local shop in London and paid by cheque. 5/10 Sold goods for £ 2800 and received the money via Bank account 12/10 Paid in Cash £110 for repairing printer 18/10 Part of furniture returned to Home Ltd £250 21/10 The owner received rent £800 for flat and deposited it to the bank account 23/10 Sold goods to Rayan £2100; from this amount £1800 cash received immediately and the rest remains on credit. 23/10 Sold goods of £700 to David and received cash 24/10 Bought a new Laptop for business use by issuing a cheque £1700 26/10 Paid the month's wages to the part-time shopkeeper by cheque £820 30/10 The owner rented an office place in a Business Park near the London on 1" October and paid rent by cheque £850 31/10 The owner has also paid £ 1200 from the business bank account to book a hotel and flight in Sotland for her holiday. 31/10 £150 Cash received from Rayan. Required: a) Write double entry record the transactions in T-accounts b) Balance the accounts and bring down an opening balance c) Extract a Trial balance as at 31st October 2021 d) Prepare an Income Statement for the period ended 31st October 2021 13 marks The closing inventory is £ 320 e) Prepare a Statement of Financial Position as at 31st October 2020 f) Write a brief letter to Linda explaining what drawings are concerning small business and answering her query concerning her holiday.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I need the solution for part d and e, I can't find it. thanks!
Transcribed Image Text:Anne York is a sole trader who started the business of buying and selling furniture in Brighton on the
1st of October 2021.
She is going to prepare accounts to 31st of September 2021. She contributed to the business with
£10,000 in the Bank, £4,800 cash, 45,000 flat and 12,000 Car. The transactions during the month are
as follows:
2/10 Purchased furniture £5400 for sale on credit from Home Ltd
4/10 She bought a computer for £800 and a printer £200 from a local shop in London and paid by
cheque.
5/10 Sold goods for £ 2800 and received the money via Bank account
12/10 Paid in Cash £110 for repairing printer
18/10 Part of furniture returned to Home Ltd £250
21/10 The owner received rent £800 for flat and deposited it to the bank account
23/10 Sold goods to Rayan £2100; from this amount £1800 cash received immediately and the rest
remains on credit.
23/10 Sold goods of £700 to David and received cash
24/10 Bought a new Laptop for business use by issuing a cheque £1700
26/10 Paid the month's wages to the part-time shopkeeper by cheque £820
30/10 The owner rented an office place in a Business Park near the London on 1 October and paid
rent by cheque £850
31/10 The owner has also paid £ 1200 from the business bank account to book a hotel and flight in
Scotland for her holiday.
31/10 £150 Cash received from Rayan.
Required:
a)
Write double entry record the transactions in T-accounts
b)
Balance the acounts and bring down an opening balance
c)
Extract a Trial balance as at 31st October 2021
d)
Prepare an Income Statement for the period ended 31st October 2021 13 marks
The closing inventory is £ 320
e)
Prepare a Statement of Financial Position as at 31st October 2020
f)
Write a brief letter to Linda explaining what drawings are concerning small business and
answering her query concerning her holiday.
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