120 marksmedium
11 marks
(a)
Thomas, a manufacturer, provided the following information for the year ended 31 March 2021 after the preparation of the manufacturing account.
| 1 April 2020 $ | 31 March 2021 $ | |
|---|---|---|
| Office equipment – Cost – Accumulated depreciation | 25 000 9 000 | 25 000 12 200 |
| Plant and machinery – Cost – Accumulated depreciation | 200 000 72 000 | 200 000 97 600 |
| Inventories – Raw materials – Work in progress – Finished goods | 20 000 12 000 27 500 | 25 000 11 000 30 000 |
| Provision for irrecoverable debts | 2 500 | 3 000 |
| Revenue | 425 000 | |
| Production cost | 300 000 | |
| Administrative expenses paid | 45 000 | |
| Carriage outwards | 2 745 | |
| Office rent paid | 24 000 | |
| Other payables – office rent | 3 000 | |
| Other receivables – administrative expenses | 5 000 | |
| Trade receivables | 60 000 | |
| Cash in hand | 800 |
Prepare the income statement for the year ended 31 March 2021.
Thomas
Income statement for the year ended 31 March 2021
9 marks
(b)
Prepare an extract of the statement of financial position at 31 March 2021 showing the Assets section only.
Thomas
Statement of financial position at 31 March 2021
Assets