2020 SMSS 3N POA EOY P2 Q2

2020 SMSS 3N POA EOY P2 Q2

2 The following balances were extracted from the books of Ian Supplies for the financial year ending 31 August 2020:

 

$

Motor vehicles

48 300

Fixtures and fittings

23 900

Cash at bank 

23 700

Cash in hand

2 895

Inventory

39 200

Trade receivables

28 750

Trade payables

35 050

Commission income

1 484

Sales revenue

165 800

Sales returns

2 335

Cost of sales

51 836

Discount allowed

1 216

Discount received

1 828

Insurance expense

3 650

Rent expense

20 400

Maintenance expense

5 280

Capital 1 September 2019

50 000

Drawings

2 700

Additional information

1. Annual rent was $24 000.

2. The insurance expense of $220 was still owing.

3. Ian, the owner, took out goods costing $100 for his own use but no record had been made.

4. A credit sale of $8 500 was made but not recorded.  The cost of sales was $3 200.

5. The business paid its supplier a cheque of $4 830 in full settlement of a debt of $4 900.

6. Commission income of $50 was earned but not yet collected.

REQUIRED

a. Prepare the statement of financial performance for the year ended 31 August 2020.

[9]

b. Prepare the statement of financial position as at 31 August 2020.

[15]

[TOTAL 24]

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