NASS 2022 Prelim P1 ANS

Answerallquestions. 1 Tanyais a soleproprietorwhobuysandsellsmusicalinstruments.ThecashatbankaccountforTanya’sbusinessforthemonthofMarch2022isasfollows. CashatbankaccountDate Particulars ChequeNo. Debit Credit Balance2022 $ $ $Mar1 Balanceb/d 1800Dr 3 Kelly 172253 930 870DrDrawings 172254 180 690Dr8 Salesrevenue 700 1390Dr12 Inventory 172255 1900 510Cr16 JJTrading 1200 690Dr21 Stephanie 172256 800 110Cr25 Officeequipment 172257 1000 1110Cr29 Salesrevenue 320 790Cr31 Kit 2400 1610Dr TanyareceivedthefollowingbankstatementforthemonthofMarch2022. BankStatementDate Details Withdrawal Deposit Balance2022 $ $ $Mar1 Balanceb/d 2300 Cr 2 Chequeno.172250 500 1800 Cr5 Chequeno.172254 180 1620 Cr8 Credittransfer–Olivia 460 2080 Cr12 Deposit 700 2780 Cr15 Chequeno.172255 1900 880 Cr18 Deposit 1200 2080 CrChequeno.172253 930 1150 Cr20 Returnedcheque 1200 50 Dr26 Directpayment–Insurance 300 350 Dr31 Bankcharges 20 370 Dr

2 REQUIRED(a)UpdateTanya’scashatbankaccountforthemonthofMarch2022. [3] Cashatbankaccount2022 Dr($) Cr($) Balance($) Mar31 Balanceb/d 1610Dr Tradereceivable–Olivia ✔460 Tradereceivable–JJTrading ✔1200 Insuranceexpense ✔300 Bankcharges ✔20 550Dr Apr1 Balanceb/d ✔✔550Dr (b)Preparethebankreconciliationstatementat31March2022. [4]TanyaBankReconciliationStatementasat31March2022✔ $ $ Balanceasperbankstatement ✔(370) Add:Depositsintransits*(✔both*correct) Salesrevenue ✔320 Kit ✔2400 2720 2350 Less:Chequesnotyetpresented* Stephanie(chequeno.172256) ✔(800) Officeequipment(chequeno.172257) ✔(1000) (1800) Adjustedbalanceaspercashatbankaccount ✔550 NAS/2022/PRELIM/4E5N/POA/7087/01

3 (c)Statetheeffectof thebankreconciliationadjustmentson Tanya’s profitforthemonthended31March2022. [1]Profitwilldecreaseby$320✔✔ (d)Otherthanbankreconciliation,statetwowaysofinternalcontrola businessmayusetosafeguardcashbalances. [1]Anytwoofthefollowing(✔each): Segregationofduties/Custodyofcash/Authorisation (e)GiveonepossiblereasonwhyTanyachoseto operateherbusinessasa soleproprietorship. [1]Tanyawantstohavefullcontroloverthebusiness.✔✔ Oranyotherreasonableanswersbasedonfeaturesofsoleproprietorship [Total:10] 2 ThefollowingbalanceswereextractedfromPokemonTrader’s bookson1 January2021. The4%bankloanwasobtainedon1October2020topurchaseawarehouse.Theloanis tobepaidequallyover10years.Thepartialprincipalsumrepaymentandinterestpaymentaretobemadeon30Septembereachyear.Partofthewarehousewasthenleasedouttoatenantat$3500permonth.Duringtheyearended31 December2021,PokemonTraderreceivedchequesamountingto$54250fromthetenant. REQUIRED(a)Calculatetheinterestexpenseincurredfortheyearended31December2021. [2](4%x300000x9/12)+[4%x(300000–(300000/10))x3/12]✔✔ =$11700✔✔ NAS/2022/PRELIM/4E5N/POA/7087/01 {p136/5} $4%Bankloan 300000Rentalincomereceivable 1750

4 (b)Calculatetheamountofinterestexpensepayableat31December2021. [1]4%x[300000–(300000/10)]x3/12✔ =$2700✔ (c)Preparethebankloanaccountforthetwoyearsended31December2020and2021. [2]Bankloanaccount2020 Dr($) Cr($) Balance($) Oct1 Property/Cashatbank ✔3