IGCSEAccountingEdexcelFinancial StatementsExam QuestionsThe Preparation of Financial StatementsFinancial Statements of a Sole Trader

Financial Statements of a Sole Trader (Edexcel IGCSE Accounting: Financial Statements): Exam Questions

Exam code: 4AC1

1 hour4 questions
1a
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3 marks

Ed, a sole trader, provided the following information.

Balance at 1 May 2022

$

Fixtures and fittings

– cost

– provision for depreciation

123500

55575

Bank

1680

Inventory

25500

Other payables

1400

Trade receivables

76000

Trade payables

25100

Calculate the equity at 1 May 2022.

How did you do?

1b
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17 marks

Balance at 30 April 2023

$

Fixtures and fittings

– cost

– provision for depreciation

275000

96825

Bank

2650 Cr

Bank loan (2030)

75000

Inventory

17600

Other payables

1900

Trade receivables

86500

Trade payables

18540

During the year ended 30 April 2023 Ed took cash of $6090 for his own use.

Profit for the year ended 30 April 2023 was $45670 before:

  • writing off an irrecoverable debt of $1000

  • creating a provision for irrecoverable debts of 2% of trade receivables.

Prepare the statement of financial position at 30 April 2023.

Ed
Statement of Financial Position at 30 April 2023

How did you do?

2
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12 marks

Yamini purchases and sells goods on a credit basis. She provided the following information for the year ended 30 September 2022.

1 October 2021
$

30 September 2022
$

Motor vehicles
Cost
Provision for depreciation

50 000
10 000

50 000
To be calculated

Inventory

25 750

27 460

Other payables – wages

-

500

Other receivables – office expenses

-

400

Trade payables

15 500

12 750

Trade receivables

21 400

32 500

Bank Summary

Receipts

$

Payments

$

Interest received

110

Drawings

18 000

Trade receivables

167 650

Office expenses

26 750

Trade payables

92 750

Wages

33 000

Prepare the income statement for the year ended 30 September 2022.

Yamini

Income statement for the year ended 30 September 2022

How did you do?

3a
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6 marks

During the year ended 31 December 2019

  • sales were $210 000

  • purchases were $155 000

  • Mia took $3 000 in goods and $15 150 in cash for personal use

  • Mia introduced her private motor vehicle valued at $10 000

  • profit for the year as a percentage of revenue was 10%.

At 31 December 2019 the inventory was valued at $25 000

Prepare an extract of the income statement for the year ended 31 December 2019 showing the trading section only.

Mia

Income statement for the year ended 31 December 2019

How did you do?

3b
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5 marks

Prepare an extract of the statement of financial position at 31 December 2019 showing the equity section only.

Mia

Statement of financial position at 31 December 2019 Equity

Equity

How did you do?

4a
20 marks

Yu Win provided the following information

At 1 June 2017

$

Provision for irrecoverable debts

3000

Fixtures and fittings – Cost

20000

Fixtures and fittings – Accumulated depreciation

5000

Motor vehicles – Cost

50000

Motor vehicles – Accumulated depreciation

13550

Inventory

37150

At 31 May 2018

$

Carriage inwards

3625

Discount received

1250

General expenses

24375

Purchases

185375

Purchases returns

12500

Sales

329500

Sales returns

15500

Wages and salaries

38650

During the year ended 31 May 2018:

  • Fixtures and fittings purchased on 1 January 2013 for $7 500 were sold for $5 400

  • A motor vehicle costing $20 000 was purchased

The following adjustments have not yet been made:

  • Closing inventory $43 950

  • Yu Win took goods for personal use costing $2 500

  • Wages and salaries owing $1 350

  • General expenses paid in advance $1 125

  • A decrease in the provision for irrecoverable debts of $750

  • depreciation charge:

    • Fixtures and fittings 5% per annum straight line

    • Motor vehicles 10% per annum reducing balance

    • a full year’s depreciation is charged in the year of purchase and none in the year of disposal.

Prepare the Income Statement for the year ended 31 May 2018.

Yu Win
Income Statement for the year ended 31 May 2018

How did you do?

4b
5 marks

Prepare the Statement of Financial Position at 31 May 2018 showing the non-current assets section only.

Yu Win
Statement of Financial Position at 31 May 2018

How did you do?