SPS Solutions Prelims 2022.xlsx

Issued share capital (100 000 ordinary shares) 150000 Retained earnings 10530 Sales revenue 129920 Sales returns 9500 Inventory 3800 8600 Inventory 22980 Prepaid expenses 4500 7300 Rental income 1250 Trade receivables 5550 11620 Trade payables 13740 Cash in hand 1600 900 Trade receivables 20410 Cash at bank 13600 - Cost of sales 31480 CA 2905028420 Salaries expenses 22960 Interest on loan 1100 Bank overdraft - 6200 Cash at bank 25720 5 year Bank loan 20 00016 000 Rental expenses 30500 Current portion of long-term borrowings - 4000 Fixtures and fittings, at cost 60200 Trade payables 4400 10800 Motor vehicles, at cost 120000 CL 4400 21000 Accumulated depreciation: 12520 Fixtures and fittings 2910 WC Ratio 6.60 1.35 Motor vehicles 16500 Quick Ratio 4.72 0.60 8% bank loan (repayable 30 September 2024) 20000 344850 344850 0

SPS Prelim 2022 Paper 2 Q1a Shane GabrielStatement of Financial Performance for the year ended 31 December 2021 $ $Sales Revenue 129,920 1Less: Sales Returns 9,500 1Net sales Revenue 120,420Less: Cost of sales 31,4801Gross Profit 88,9401 Add: Other Income:Commission income 1,6002 Less: other expensesSalaries expense (22960+2040)25,000 2Interest Expense (8% x 20000)1,600 2Rental Expense (30500-1900)28,600 2Depreciation of fixtures and Fittings (60200 x 10%) 6,020 2Depreciation of motor vehicles (120000-16500) x20% 20,700 2Impairment loss on trade receivables (800+410)1,21083,1302Profit for the year 7,41018 Q 1 b Shane GabrielStatement of Financial Position as at 31 December 2021AssetsNon-current assets CostAccumulated DepreciationNet Book Value$ $ $ ,mn Fixtures and Fittings60,2008,93051,2702Motor vehicle 120,00037,20082,8002Office Equipment 134,070 Current assetsTrade receivables (20410-410)20,000 1Less: Allowance for impairment on trade receivables800Net Trade receivables 19,200 1Inventory 22,980 1Rental expense prepaid 1,900 1Rental income receivable 350 1Cash at bank (25720+80000)105,720150,1502Total assets 284,2201 Equity and liabilitiesShareholders' equityShare Capital 150 000 Ordinary Shares230,0001Retained Earnings (10530+7410-7500)10,4402Total Shareholders Equity 240,440 Non-current liabilitiesLong-term borowings (20000-5000)15,0001 Current liabilitiesTrade Payables 13,740 1Salaries expense payable 2,040 1Interest expenses payable (1600-1100)500 1Current portion of long term borrowing5,000 1Dividens Payable 7,50028,7801Total equity and liabilities 284,220122

SPS Prelim 2022 Paper 2 Q 2a (i)Dr Cash in handCr Sales revenue 1(ii)Dr Trade receivablesCr Sales Revenue 1b Journal(i)Date DrCr2021 $ $Jul-04Allowance for impairment on trade receivables1620 Brandon 16202(ii)31-DecAllowance for impairment of trade receivables475 Impairment loss on trade receivables4752c Statement of Financial Performance for the year ended 31 December 2021Other expensesReversal of impairment loss on trad