Question

Question 2. AIF Ltd has the following trial balance as at 30th June 2023. £ £ Sales 135,000 Purchases 82,500 Opening inventory 12,750 Share capital 40,000 Trade receivables 17,500 Rent expenses 4,800 Cash at bank 22,000 Long term loan 8,700 Electricity expenses 750 Insurance expenses 1,150 Motor vehicle-cost 20,000 -accumulated depreciation 4,000 Plant and machinery-cost 22,000 -accumulated depreciation 5,000 Fee income received 1,250 Salaries and wages 25,500 Trade payables 15,000 208,950 208,950 Following additonal Information is available. • Closing inventory as at 30th June 2023 is £8,500. • An amount of £450 is due for electricity expenses which is not yet recorded. • Rent expenses of £200 is due for the year. • Included in insurance expenses is £250 paid for the year ended 30th September 2023. • Depreciation of motor vehicle follows straight line basis: 15%. • Depreciation of plant and machinery is 10% on reducing balance method. REQUIRED: Prepare the Income statement and the Statement of financial position for AIF Ltd for the year ended 30th June 2023. Please show all workings. (50 marks)

          Question 2. AIF Ltd has the following trial balance as at 30th June 2023.
£
£
Sales
135,000
Purchases
82,500
Opening inventory
12,750
Share capital
40,000
Trade receivables
17,500
Rent expenses
4,800
Cash at bank
22,000
Long term loan
8,700
Electricity expenses
750
Insurance expenses
1,150
Motor vehicle-cost
20,000
-accumulated depreciation
4,000
Plant and machinery-cost
22,000
-accumulated depreciation
5,000
Fee income received
1,250
Salaries and wages
25,500
Trade payables
15,000
208,950
208,950
Following additonal Information is available.
• Closing inventory as at 30th June 2023 is £8,500.
• An amount of £450 is due for electricity expenses which is not yet recorded.
• Rent expenses of £200 is due for the year.
• Included in insurance expenses is £250 paid for the year ended 30th September 2023.
• Depreciation of motor vehicle follows straight line basis: 15%.
• Depreciation of plant and machinery is 10% on reducing balance method.
REQUIRED:
Prepare the Income statement and the Statement of financial position for AIF Ltd for the year ended 30th June 2023. Please show all workings.
(50 marks)

Show more…

question 2 aif ltd has the following trial balance as at 30th june 2023 sales 135000 purchases 82500 opening inventory 12750 share capital 40000 trade receivables 17500 rent expenses 4800 ca 24486

Added by Marta O.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

10/23/2023

Step 1

Electricity expenses: Add £450 (unrecorded expense) to the existing £750, resulting in a total of £1200. Rent expenses: Add £200 (unrecorded expense) to the existing £4800, resulting in a total of £5000. Insurance expenses: Subtract £250 (prepaid expense) from Show more…

Show all steps

lock

Thanks for your feedback!

Question 2. AIF Ltd has the following trial balance as at 30th June 2023. £ £ Sales 135,000 Purchases 82,500 Opening inventory 12,750 Share capital 40,000 Trade receivables 17,500 Rent expenses 4,800 Cash at bank 22,000 Long term loan 8,700 Electricity expenses 750 Insurance expenses 1,150 Motor vehicle-cost 20,000 -accumulated depreciation 4,000 Plant and machinery-cost 22,000 -accumulated depreciation 5,000 Fee income received 1,250 Salaries and wages 25,500 Trade payables 15,000 208,950 208,950 Following additonal Information is available. • Closing inventory as at 30th June 2023 is £8,500. • An amount of £450 is due for electricity expenses which is not yet recorded. • Rent expenses of £200 is due for the year. • Included in insurance expenses is £250 paid for the year ended 30th September 2023. • Depreciation of motor vehicle follows straight line basis: 15%. • Depreciation of plant and machinery is 10% on reducing balance method. REQUIRED: Prepare the Income statement and the Statement of financial position for AIF Ltd for the year ended 30th June 2023. Please show all workings. (50 marks)

Play audio

Feedback

Powered by NumerAI

Akash M and 69 other subject Principles of Accounting educators are ready to help you.

Ask a new question

Labs

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs

Recommended Videos

Recommended Textbooks

Transcript

00:01 To prepare a financial statement for a run, errand, event, as at happy fathers march 2017 or 2020 -x7, we can provide it step by step.

00:22 First, we calculate cost of damage, damage good, cost received, 15 ,000 minus 500, valuing 14 ,500.

00:42 We can add depreciation things, divided by 5 years, to 20 ,000.

01:01 And tax paid, net damage good value, 3 ,500 minus 5 ,500.

01:21 This we realize value 9 ,000.

01:25 So we prepare a statement of profit or loss, and other comprehensive income, particulars and amounts.

01:47 Sales, 2 ,165 ,000.

02:02 Also, sales, inventory, this is start, 740 ,000.

02:30 Our sales, 1 ,036 ,000.

02:40 And premise good, 9 ,000.

02:52 Depreciation of your loan, total 20 ,000.

03:06 Cost of good available for sale, 1 ,439 ,000.

03:17 Inventory, which is at the end, 95 ,000.

03:30 Cost of sales, 1 ,324 ,000.

03:41 Gross profit, is 831 ,000.

03:55 Administrative expense, 250 ,000.

04:05 Distribution cost, 95 ,000.

04:15 Total operating cost, i mean, total operating expense, 545 ,000.

04:45 Profit, 24 ,000.

04:58 Due to aid, 6 ,000.

05:02 And income tax expense, 2 ,165 ,000...

Ace is your personal tutor. It breaks down any question with clear steps so you can learn.

Start Using Ace

Continue solving this problem

Create a free account to:

View full step-by-step solution
Ask follow-up questions with Ace AI
Save progress and study later