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ho started the business c unts to 31st of Septembe

ho started the business c unts to 31st of Septembe

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ca you help with d) and e)

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