urgenti need question 10 just Mala is a keen artist who decided to turn her hobby into a business. She started trading on January 1st 2022 as “Mala’s Visions”, and sells portraits of people and animals. She visits her subject, take lots of photos and then goes home and, over a period of weeks, produces beautiful colour pencil drawings. Mala kept records of everything that happened in her business during its first year of trading (see “Records” below), though she does not know anything about bookkeeping. Mala has now completed her first year of trading and needs to produce final accounts for the business. RECORDSDATEWHAT HAPPENED1/1/22£1,000 invested by Mala to get the business up and running.2/1/22Spent £200 on buying paper, pencils etc from Artworks Ltd.5/1/22Drew Mr. Smith’s dog, Bonzo for a fee of £500, payable on 16/3.26/1/22Bought machinery for projecting photos onto paper for £400.2/2/22Drew Mr. Smith’s wife, Hilda, for a fee of £350, payable on 17/7.1/3/22Took out a loan of £2000 from BarcMid Bank.16/3/22Bonzo picture finished and Mr. Smith pays £500.13/5/22Spent £100 on photo paper for Mala’s printer.1/6/22Paid interest of £25 on bank loan.16/6/22Agreed to draw a group scene for Andrea of her horse, husband and baby for a fee of £700.17/7/22Finished £350 picture of Hilda but Mr. Smith said it made her look like an aye-aye and he refused to pay.20/8/22Spent £125 on buying packing materials and frames for sending pictures.1/9/22Paid interest of £25 on bank loan.2/9/22Spent £55 on Ebay buying more machinery.1/10/22Spent £150 placing an advert for the business in “Ambridge Life” magazine.15/10/22Agreed to do a 50th anniversary portrait of Alan and Mary Jackson (next door neighbours). £650 is what Mala would normally charge but she offered it as a gift as they are friends.20/10/22Under threat of legal action, Mr. Smith finally pays the £350 for the portrait of his wife.1/12/22Paid interest of £25 on bank loan.31/12/22Contribution of £225 to gas and electricity bills by “Mala’s Visions” as the business operates from Mala and Patrick’s house. QUESTION 7 Turn Mala’s informal records into formal T accounts, using the template below for each T account. You may need to add or remove rows for some of the T accounts. T account template: NAMEDATEDRCR BALANCE QUESTION 8 Using the T accounts from Question 7, prepare a Trial Balance using the second template below. You will need to add some rows into the middle of it. Trial Balance template: Account Name DRCR Total: QUESTION 9 Using relevant figures from the Trial Balance from Question 8, produce a profit and loss account for Mala’s first year of business, presenting it in an appropriate form. QUESTION 10 Comment on what the profit and loss accounts tell you, and explain whether Mala’s business has been successful in its first year of trading.

The solution has been provided for the question which has been asked by the student to be solved…

Answered: Comment on what the profit and loss…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

urgent

i need question 10 just

Mala is a keen artist who decided to turn her hobby into a business. She started trading on January 1^st 2022 as “Mala’s Visions”, and sells portraits of people and animals. She visits her subject, take lots of photos and then goes home and, over a period of weeks, produces beautiful colour pencil drawings. Mala kept records of everything that happened in her business during its first year of trading (see “Records” below), though she does not know anything about bookkeeping. Mala has now completed her first year of trading and needs to produce final accounts for the business.

RECORDS
DATE	WHAT HAPPENED
1/1/22	£1,000 invested by Mala to get the business up and running.
2/1/22	Spent £200 on buying paper, pencils etc from Artworks Ltd.
5/1/22	Drew Mr. Smith’s dog, Bonzo for a fee of £500, payable on 16/3.
26/1/22	Bought machinery for projecting photos onto paper for £400.
2/2/22	Drew Mr. Smith’s wife, Hilda, for a fee of £350, payable on 17/7.
1/3/22	Took out a loan of £2000 from BarcMid Bank.
16/3/22	Bonzo picture finished and Mr. Smith pays £500.
13/5/22	Spent £100 on photo paper for Mala’s printer.
1/6/22	Paid interest of £25 on bank loan.
16/6/22	Agreed to draw a group scene for Andrea of her horse, husband and baby for a fee of £700.
17/7/22	Finished £350 picture of Hilda but Mr. Smith said it made her look like an aye-aye and he refused to pay.
20/8/22	Spent £125 on buying packing materials and frames for sending pictures.
1/9/22	Paid interest of £25 on bank loan.
2/9/22	Spent £55 on Ebay buying more machinery.
1/10/22	Spent £150 placing an advert for the business in “Ambridge Life” magazine.
15/10/22	Agreed to do a 50^th anniversary portrait of Alan and Mary Jackson (next door neighbours). £650 is what Mala would normally charge but she offered it as a gift as they are friends.
20/10/22	Under threat of legal action, Mr. Smith finally pays the £350 for the portrait of his wife.
1/12/22	Paid interest of £25 on bank loan.
31/12/22	Contribution of £225 to gas and electricity bills by “Mala’s Visions” as the business operates from Mala and Patrick’s house.

QUESTION 7

Turn Mala’s informal records into formal T accounts, using the template below for each T account. You may need to add or remove rows for some of the T accounts.

T account template:

NAME
DATE	DR	CR


BALANCE

QUESTION 8

Using the T accounts from Question 7, prepare a Trial Balance using the second template below. You will need to add some rows into the middle of it.

Trial Balance template:

Account Name	DR	CR



Total:

QUESTION 9

Using relevant figures from the Trial Balance from Question 8, produce a profit and loss account for Mala’s first year of business, presenting it in an appropriate form.

QUESTION 10

Comment on what the profit and loss accounts tell you, and explain whether Mala’s business has been successful in its first year of trading.

Expert Solution

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.