Question

Question 5

Percy Bazaar did not keep proper accounting records. She asked you to review this informatio from her records.

ASSETS AND LIABILITIES:

	31 Dec. 2018	31 Dec. 2019
Property, Plant & Equipment	40 000.00	40 000. o
Accounts receivable	10 000.00	30 000.00
Accounts payable	30 000.00	36 000.00
Accrued expense ( Telephone & internet)	0.00	6 000.00
Bank	30 000.00	30 000.00
Cash	4 000.00	2 000.00
Inventory	40 000.00	20 000.00
Capital	0.00	17 ooo.op
Long term loan ( Deutsche Bank)	60 000.00	60 000.00

The following expenses were paid during the year:

Telephone & internet N$ 8 000.00 paid by cheque.

Sundry expenses N$ 18 000.00 paid by cheque.

Telephone & internet paid by cash N$ 2 000.00.

Drawings N$ 10 000.00 by cash.

The bank statement from First National Bank Namibia indicated that:

There was N$ 50 000.00 paid b receivables and banked immediately.

Percy Bazaar received N$ 10 000 cash from one of the receivables. Payables were paid N$ 24 000.00 by cheque during the year.

You are required to:

5.1 Prepare the following General ledger accounts ( T- accounts) and balance them off properly:

Accounts receivable	[6 Marks]
Accounts Payable	[5 Marks]
5.2 Mention any two features of incomplete records.	[2 Marks]

Answer 1

End of content.

Total Liabilities at 31 dec 2019
Salaries payable	34000
Accounts payable	52000
Notes Payables	94000
	180000
Total Equity at 31 dec 2019 = 70% of Total Liabilities at dec 31 ,2019 =70% *180,000 =$126000
Retained earnings at dec 31 ,2019 = Total Equity - Common stock =$126000 - 70,000 =$56000
Income Earned During the year
Sales	97000
Less: Cost of goods Sold	-40000
Gross profit	57000
Add: Interest Revenue	12000
Less: Other Expenses
Salaries expense	-32000
Suplies Expenses	-10000
net Incomre	27000
Income tax Expense	-10000
Income after Tax	17000
Dividend Paid During the year = Opening retained earings + Income after tax - Closing retained Earnings
Dividend Paid During the year = $40,000 +$17000 -56000 =$1000