IGCSEAccountingEdexcelFinancial StatementsExam QuestionsThe Preparation of Financial StatementsIncomplete Records

Incomplete Records (Edexcel IGCSE Accounting: Financial Statements): Exam Questions

Exam code: 4AC1

1 hour5 questions
1a
1 mark

On 1 January 2023, Thelma started in business by introducing cash of $5000 and a motor vehicle valued at $12000. On this day, she also took out a bank loan of $5000 repayable in full on 31 December 2028.

Calculate the equity at 1 January 2023.

How did you do?

1b
15 marks

Thelma did not maintain a full set of accounting records but was able to provide the following information after her first year’s trading.

Balances at 31 December 2023

$

Bank overdraft

2198

Cash in hand

890

Inventory

14568

Other receivables

200

Other payables

567

Trade receivables

2167

Trade payables

2325

During the year ended 31 December 2023:

  • Thelma purchased an additional motor vehicle costing $10000 that she funded from her own monies.

  • All motor vehicles were depreciated by 20% per annum using the straight line method.

  • A further bank loan, $3000, was taken out. This was to be repaid in full on 30 June 2024.

  • Thelma withdrew cash, $4000, and goods costing $800

Prepare the statement of financial position at 31 December 2023.

Thelma
Statement of Financial position at 31 December 2023

How did you do?

1c
4 marks

Discuss two reasons why a business should maintain full accounting records.

How did you do?

2a
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3 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

Depreciation is charged at 20% per annum using the reducing balance method.

Calculate for the year ended 30 September 2022: credit sales

How did you do?

2b
3 marks

Calculate for the year ended 30 September 2022: credit purchases.

How did you do?

3a
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10 marks

On 1 May 2021 Sajjan started a business with capital of $75000.

She provided the following information on 30 April 2022.

Bank summary

Receipts

$

Payments

$

Capital

75000

Drawings

31750

Trade receivables

165200

Motor vehicle

40000

Balance c/d

3225

Office expenses

18975

Rent and rates

14600

Trade payables

104200

Wages and salaries

28900

Motor expenses

5000

243425

243425

Balance b/d

3225

  • Closing inventory was valued at $36000

  • The carrying value of the motor vehicle was $38000

  • Trade receivables were $51700 and trade payables were $42500

  • A provision for irrecoverable debts of 5% of trade receivables was created.

  • Wages and salaries of $2100 were owing and rent and rates of $1400 were paid in advance.

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

Sajjan

Income statement for the year ended 30 April 2022

How did you do?

3b
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10 marks

Prepare the statement of financial position at 30 April 2022.

Sajjan

Statement of financial position at 30 April 2022

How did you do?

4a
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4 marks

Amira, a sole trader, does not keep full accounting records. She has provided the following information.

1 April 2020

$

31 March 2021

$

Motor vehicle

Cost

Accumulated depreciation

40 000

19 520

50 000

To be calculated

Land

31 670

31 670

Cash at bank

1 350

1 650 Cr

Inventory

21 500

24 000

Other receivables - insurance

1 500

-

Trade payables

32 000

31 000

Trade receivables

34 500

37 500

During the year ended 31 March 2021 Amira sold her motor vehicle for $22 940.

In addition, she purchased a new motor vehicle costing $50 000. Motor vehicles are depreciated at 20% per annum using the reducing balance method. A full year's depreciation is charged in the year of purchase and none in the year of disposal.

Amira borrowed $50 000 as an interest free loan repayable in five equal annual instalments. The first instalment was paid on 31 March 2021.

Her cash drawings during the year amounted to $25 000 and she also took goods costing $5 000 for her personal use.

At 31 March 2021 irrecoverable debts of $2 500 were to be written off. A provision for irrecoverable debts of 5% was to be created.

Prepare the statement of affairs (statement of financial position) at 1 April 2020.

Amira

Statement of affairs at 1 April 2020

How did you do?

4b
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11 marks

Prepare the statement of affairs (statement of financial position) at 31 March 2021.

Amira

Statement of affairs at 31 March 2021

How did you do?

4c
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5 marks

Prepare the equity account for the year ended 31 March 2021 to show the profit or loss for the year.

Equity Account

Date

Details

$

Date

Details

$

How did you do?

5
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3 marks

Mia provided the following information at 1 January 2019.

$

Bank

5 750 Cr

Fixtures and fittings (cost $60 000)

48 000

Inventory

20 000

Other receivables

1 100

Trade payables

34 950

Trade receivables

40 000

Calculate the equity at 1 January 2019.

How did you do?