Mr Jacky has not kept proper bookkeeping records, but he has kept notes in diary form of the trasactions of his business as at 31 May 2021. THe following transactions relate to financial year ended on 31 May 2021. a. THe sales are mosly on credit basis. No record of sales has been made, but N$ 14 200 has been received, N$ 9 700 by cheque and N$ 4 500 by cash, from debtors. b. Amount paid by cheque to suppliers during the year amounted to N$ 5 500. c. Mr. Jacky took N$ 2 600 cash for the year for personal use. d. The following payments was made for the year by cheque, Telephone Expense N$ 1 250, Transport Expenses N$ 840, Rent Expense N$ 2 200 and by cash, General Expense N$ 250 and Municipal Expense N$ 450. e. Assets was acquired on 31 March 2020, as: Motor Vehicle N$ 24 600 and Furniture and Fittings N$ 18 400. Depreciation of 10% straight line for 31 May 2021 f. THe following information is available: at 31.05.2020 at 31.05.2021 inventory N$ 1 540 2 100 Cash Balance 400 1 600 Bank Balance 3 200 3 110 Debtors 12 580 22 970 Creditors 8 630 16 680 Rent Owing - 800 Loan 2 090 2 090 required: a. Calculate capital balance as at 31 May 2020 by preparing statement of affairs. b. Calculate missing figures neccessary to prepare financial statement. c. prepare statemnt of comprehensive income and statement of Fianacial position.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Mr Jacky has not kept proper bookkeeping records, but he has kept notes in diary form of the trasactions of his business as at 31 May 2021. THe following transactions relate to financial year ended on 31 May 2021.
a. THe sales are mosly on credit basis. No record of sales has been made, but N$ 14 200 has been received, N$ 9 700 by cheque and N$ 4 500 by cash, from debtors.
b. Amount paid by cheque to suppliers during the year amounted to N$ 5 500.
c. Mr. Jacky took N$ 2 600 cash for the year for personal use.
d. The following payments was made for the year by cheque, Telephone Expense N$ 1 250, Transport Expenses N$ 840, Rent Expense N$ 2 200 and by cash, General Expense N$ 250 and Municipal Expense N$ 450.
e. Assets was acquired on 31 March 2020, as: Motor Vehicle N$ 24 600 and Furniture and Fittings N$ 18 400.
f. THe following information is available:
at 31.05.2020 at 31.05.2021
inventory N$ 1 540 2 100
Cash Balance 400 1 600
Bank Balance 3 200 3 110
Debtors 12 580 22 970
Creditors 8 630 16 680
Rent Owing - 800
Loan 2 090 2 090
required:
a. Calculate capital balance as at 31 May 2020 by preparing statement of affairs.
b. Calculate missing figures neccessary to prepare financial statement.
c. prepare statemnt of comprehensive income and statement of Fianacial position.
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