Question

You have been contacted by the owner of a Jewelery Retail shop, Magna Qarta , to prepare their accounts. You observe that they do not have a full set of accounts. However, you extract the following data from their records
Balances as at 31/12/2019
Property, plant and equipment		1455000
Accumulated Depreciation		354438
inventories		523800
Receivables		291000
Pepayments-Rates		11640
Bank		58200
Cash		17460
Creditors		116400
Electricity Accrued		7275
Balances as at 31/12/2020
inventories		986490
Receivables		349200
Pepayments-Rates		13095
Bank overdraft		451050
Cash		17460
Creditors		133860
Electricity Accrued		8730
The records show cash and bank transactions as follow:
Cash Receipts	Balance B/D	17460
	Sales	436500
Cash Payments	Deposit into bank	436500
Bank Receipts	Balance B/D	58200
	Accounts Receivable	4074000
	5% Loan received	873000
	Sale proceeds from sale of motor van	238620
	Cash banked	436500
Bank Payments
	Accounts Payables	3201000
	Rates	261900
	Electricity	58200
	Telephone	43650
	Loan Interest	43650
	Insurance	29100
	Wages and Salaries	582000
	Drawings	727500
	Property, Plant and Equipment	1164000
	Sundry Expenses	20370
ADDITIONAL INFORMATION
The loan was received on 1st January 2019 and depreciation for PPE is at 20% per annum
Cost of motor van that was disposed off		291000
Accumulated Depreciation of the motor van that was disposed off		55290
Discount received during the year amounted to		58200
During the year the owner gifted a pair of earings to his daughter worth		58200

Answer 1

For the period ending 31st Dec, 2020

st

<<<<<END>>>>>