2020 BGSS 3N POA EOY P2 Q1

2020 BGSS 3N POA EOY P2 Q1

1 The following trial balance was extracted from the books of Bottles and Boxes Trading on 30 September 2020.

 

Debit $

 

Credit $

Sales revenue

  

158 000

Sales returns

13 950

  

Cost of sales

93 250

  

Cash at bank

5 400

  

Trade receivables 

11 800

  

Trade payables

  

19 200

Inventory

50 930

  

Bank loan (repayable by 2024)

 

 

50 000

Office equipment 

12 100

  

Motor vehicles 

69 000

  

Interest expense 

2 600

  

Commission income 

  

10 810

Discounts allowed

910

  

Discount received

  

1 800

Rent expense

45 000

  

Drawings 

5 050

  

Capital, 1 October 2017

 

 

70 180

 

309 990

 

309 990

Additional information

1. The inventory was written down to its net realisable value of $47 930.

2. Interest expense of $200 was unpaid.

3. Commission income of $1 610 was received in advance.

REQUIRED

a. Prepare the statement of financial performance for the year ended 30 September 2020.

[10]

b. Prepare the statement of financial position as at 30 September 2020.

[10]

[TOTAL 20]

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