Q6 W2003

6 Jenny Lee is a trader and the following Trial Balance was extracted from her books on 31
December 2002.

Dr. Cr.
$ $
Purchases and Sales 474 000 648 000
Stock, 1 January 2002 46 000
Debtors and Creditors 53 000 39 000
Sundry expenses 16 600
Carriage on purchases 2 400
Equipment 9 000
Delivery vehicle 33 000
Rent and insurance 18 000
Provision for doubtful debts, 1 January 2002 1 200
Bad debts 900
Discounts received 5 500
Wages and salaries 76 400
Lighting and heating 8 000
Bank 9 500
Drawings 55 000
Capital 108 100
801 800 801 800

Additional information:

1. Stock at 31 December 2002 was valued at $64 400.

2. $700 was owing for sundry expenses at 31 December 2002.
3. The provision for doubtful debts is to be reduced to $800.
4. Jenny Lee’s imperfect attempt at the Delivery Vehicle account was entered in the
ledger as follows:
Delivery Vehicle
$ $
2002 2002
Jan 1 Balance (old vehicle) b/d 12 000 Jan 1 Cash (sale of old vehicle) 15 000
Cash (cost of new Dec 31 Balance c/d 33 000
vehicle) 36 000

48 000 48 000
2003
Jan 1 Balance b/d 33 000

Jenny Lee wishes to charge depreciation on the new vehicle at 20% on cost.

5. During 2002, Lee took goods at cost, $3000, from the business for her private use.
No entries were made in the books.

REQUIRED:

(a) Prepare the Trading and Profit and Loss Accounts for the year ended
31 December 2002. [19]

(b) Draw up the Balance Sheet as at 31 December 2002. [15]

Q5 W2004

5 John Cosway is a trader. The following balances were extracted from his books on 31 August
2004.
$
Purchases 67 600
Sales 121 300
Wages and salaries 23 700
Rent and rates paid 7 350
Insurance 1 480
Carriage on purchases 1 260
Discounts received 460
Sundry expenses 10 760
Rent received 1 750
Debtors 11 250
Creditors 7 200
Bank overdraft 1 560
Stock at 1 September 2003 9 650
Capital at 1 September 2003 29 000
Fixtures and equipment at cost 10 000
Drawings 18 220

Additional information

1. Stock at 31 August 2004 was valued at $11 200.

2. At 31 August 2004 rates prepaid were $150.

3. Wages and salaries of $2350 were accrued at 31 August 2004.

4. Accountancy fees of $1500 for the year are accrued at 31 August 2004.

5. A provision for doubtful debts of 4% of debtors at 31 August 2004 is to be created.

6. Fixtures and equipment are to be depreciated by $2000 for the year.

REQUIRED

(a) Prepare the Trading and Profit and Loss Accounts of John Cosway for the year ended
31 August 2004. [20]

(b) Prepare the Balance Sheet of John Cosway as at 31 August 2004. [15]

[Total: 35]

© UCLES 2004 7110/02 O/N/04 [Turn over

Q5 W2004

Answer Question 5 on pages 11 and 12 or on separate multi-column accounting paper.

5 John Cosway is a trader. The following balances were extracted from his books on 31 August
2004.
$
Purchases 67 600
Sales 121 300
Wages and salaries 23 700
Rent and rates paid 7 350
Insurance 1 480
Carriage on purchases 1 260
Discounts received 460
Sundry expenses 10 760
Rent received 1 750
Debtors 11 250
Creditors 7 200
Bank overdraft 1 560
Stock at 1 September 2003 9 650
Capital at 1 September 2003 29 000
Fixtures and equipment at cost 10 000
Drawings 18 220

Additional information

1. Stock at 31 August 2004 was valued at $11 200.

2. At 31 August 2004 rates prepaid were $150.

3. Wages and salaries of $2350 were accrued at 31 August 2004.

4. Accountancy fees of $1500 for the year are accrued at 31 August 2004.

5. A provision for doubtful debts of 4% of debtors at 31 August 2004 is to be created.

6. Fixtures and equipment are to be depreciated by $2000 for the year.

REQUIRED

(a) Prepare the Trading and Profit and Loss Accounts of John Cosway for the year ended
31 August 2004. [20]

(b) Prepare the Balance Sheet of John Cosway as at 31 August 2004. [15]

[Total: 35]

© UCLES 2004 7110/02 O/N/04 [Turn over

Q5 S2005

Q 5 The following balances were extracted from the books of Sandy Marsh, a trader, on 30
April 2005.

$
Sales 196 300
Purchases 83 500
Wages and salaries 66 400
Rent and rates paid 9 900
Discount received 1 400
General expenses 21 100
Debtors 16 300
Creditors 6 800
Fixtures and fittings at cost 12 200
Provision for depreciation on
fixtures and fittings at 1 May 2004 7 320
Stock at 1 May 2004 13 350
Cash at bank 970
Capital at 1 May 2004 25 000
Drawings 13 100

Additional information

1. Stock at 30 April 2005 was valued at $12 600.

2. At 30 April 2005 rent prepaid was $900.

3. Wages and salaries of $5500 were accrued at 30 April 2005.

4. Fixtures and fittings are to be depreciated by 20% per annum on cost.

5. A provision for doubtful debts of 3% of debtors at 30 April 2005 is to be created.

6. The bank statement for the business was received on 30 April 2005. It included an entry
of $120 for bank charges. Sandy Marsh has not entered this item in her books.

REQUIRED

(a) Prepare the Trading and Profit and Loss Accounts of Sandy Marsh for the year ended
30 April 2005. [17]

(b) Prepare the Balance Sheet of Sandy Marsh as at 30 April 2005. [18]

[Total: 35]

© UCLES 2005 7110/02 M/J/05 [Turn over