SAM does not keep a full set of double entry accounts. Summarised Bank Account:- Debit entries: Receipts...

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Accounting

SAM does not keep a full set of double entry accounts.
Summarised Bank Account:-
Debit entries: Receipts from customers 60500
: Sale of Non current asset 750
Credit entries : Payments to suppliers 34900
: Wages 15000
: Heating 2500
: Drawings 5000
: Purchase of Non current asset 8000
: General Expenses 6000
Additional Information:
1 May 2017 30 April 2018
Bank 100 cr ?
Inventory 5250 11000
Trade Receivables 9750 8400
Trade Payables 10500 9300
Non current assets (book value) 40000 42000
Heating 600 prepaid 250 accrued
6% Bank Loan 20000 20000
Capital 25000 ?
The Non current asset sold during the year had a book value of$1000

Prepare
(i) An Income Statement for the year ended 30 April 2018
(ii) A Statement of Financial Position as at 30 April 2018

Answer & Explanation Solved by verified expert

3.8 Ratings (631 Votes)

Calculation parts Bank account at Beginning balance credit balance means Negative Balance 100 Add Cash Receipts Receipts from customers 60500 Sale of Noncurrent asset 750 61250 Less Cash Payments Payments to suppliers 34900 Payments to Wages 15000 Payments to Heating 2500 Payments to Drawings 5000 Purchase of Noncurrent asset 8000 General Expenses 6000 71400 Negative Bank account at ending balance See Answer

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