70.2K

Verified Solution

Link Copied!

Question 1 The following are the unadjusted ledger balances of Prancer Limited for the year ended 31 March 2021 Ordinary Share Capital Sales Trade payables Purchases return Purchases Sales returns Carriage outwards Carriage inwards Rental expense Insurance expense Advertising Salaries Cash at Bank Opening Inventory (1st April 2020) Trade Receivables Furniture and fittings at cost Accumulated Depreciation (1st April 2020): Fumiture and fittings Equipment at cost $ 45,000 120,000 8,100 1,800 71,860 674 654 312 6,500 5,200 3,400 8,400 4,700 14,200 7,000 40,000 4,000 16,000 Additional information needed for year-end adjustments, are as follows: Insurance for April 2021 $400 Closing Inventory, at 31 March 2021 $14,500 Irrecoverable debts to be written off $1,200 Rental owing as at 31 March 2021 $800 Depreciation for the year - Furniture and Fittings $4,000 Depreciation for the year - Equipment 20% on cost Required: a. Prepare an Income Statement for the year ended 31 March 2021. [10 marks) b. Prepare a statement of Financial Position as at that date. Appendix C Assets Non-current assets Land Property, plant and equipment Less: Accumulated Depreciation Motor Vehicles Less: Accumulated Depreciation Current assets Closing Inventory Trade receivables (after writing off) Prepayments Accrued Revenue Bank or Cash at bank Cash or Cash in hand Total Assets Equity and Liabilities Capital and Reserves Ordinary Share Capital Reserves Retained Earnings (Retained Earnings b/f + Current year profit - Dividends) Non-Current Liabilities Long-term Borrowings/Bank Loan Debentures Current Liabilities Trade payables Tax Payable Accruals Unearned Revenue Bank overdraft Total equity and liabilities

Answer & Explanation Solved by verified expert

See Answer