Deyi_P2_4E5NA Prelim 2022 (sharing)

1 Answer all questions 1 Karen Tours is an agency that specializes in local heritage tours. The following balances were extracted from the books of its business on 31 March 2022. $ Office equipment 195 000 Motor vehicles 190 000 Accumulated depreciation: Office equipment 60 000 Motor vehicles 84 000 Trade receivables 20 700 Trade payables 19 100 Allowance for impairment of trade receivables 4 100 Rent expense 48 000 Service fee revenue 55 140 Wages and salaries 2 400 General expense 1 200 Commission income 3 000 Cash at bank 8 000 Cash in hand 3 200 10% bank loan repayable by 31 March 2027 95 000 Interest paid on 10% bank loan 5 000 Share capital, 100 000 ordinary shares 100 000 Retained earnings 1 April 2021 53 160 Additional information 1 Office equipment is to be depreciated at 10% per annum using straight -line depreciation. Motor vehicles are to be depreciated at 15% using reducing-balance method. 2 One-fifth of the bank loan is to be paid on 30 June 2022. Interest is not yet fully paid. 3 Wages and salaries, $9 000 was paid by cheque and this was not recorded. 4 Commission income, $600, had been received in advance. 5 Rent expense covers the period 1 April 2021 to 30 June 2022. 6 Trade receivable, Wing was declared bankrupt. His debt of $800 has yet to be written off. 7 A review of the trade receivables indicated that 10% of the balance is likely to become uncollectible. 8 A dividend of $0.03 per share had been declared and will be paid on 15 May 2022. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 March 2022. [10] (b) Prepare the statement of financial position as at 31 March 2022. [10] [Total:20]

2 2 The following cash at bank account was extracted from the books of Marcus Trading for the month of April 2022: Cash at bank account Date Particulars Cheque No. Debit Credit Balance 2022 $ $ $ Apr 1 Balance b/d 5 000 Cr 3 Tengku 695811 1 090 6 090 Cr 8 Sammy 695812 420 6 510 Cr 15 Sales revenue 1 200 5 310 Cr 21 Nic & Tom Trading 7 780 2 470 Dr 25 Organic Trading 695813 9 110 6 640 Cr 26 Gilbert Retailer 1 776 4 864 Cr 28 Repair expense 695814 672 5 536 Cr 30 Salaries 695815 4 470 10 006 Cr May 1 Balance b/d 10 006 Cr The bank statement received for April 2022 was as follows: Bank Statement Date Particulars Withdrawal Deposit Balance 2022 $ $ $ Apr 1 Balance b/d 4 000 Dr 5 Cheque no: 695801 1 000 5 000 Dr 6 Cheque no: 695811 1 090 6 090 Dr 10 Cheque no: 695812 402 6 492 Dr 12 Direct deposit- Cliff Success 1 776 4 716 Dr 16 Cash deposit 1 200 3 516 Dr 27 Cheque 1 776 1 740 Dr 27 Cheque no: 695813 9 110 10 850 Dr 28 Direct payment – Insurance expense 105 10 955 Dr 28 Rejected cheque 1 776 12 731 Dr Additional information: It was discovered that the assistant