Jons/AnnotationApp.aspx?Annotation AccessArea=18AnnotationOfUserid=0&IsReadOnly-True&Learning Objectid=308209428&Learning Objectinstanceld=439433987&MobileBrowser-NotDelined Source Section A Answer ALL questions. This section carries 35 marks. Question A1 The Balances for Gerrard and Family, a successful trading business, for year ended 31st December 2021 are set out below 250,000 300,000 30,000 55,000 40,000 Buildings Plant and Equipment Fixtures Vehicles Accumulated Depreciation (1-1-21) Buildings Plant and Equipment Fixtures Vehicles Purchases Sales Revenue Purchase Returns Carriage In Inventory (1-1-21) Salaries Vehicle Expenses Electricity Electricity Owing (1-1-21) Irrecoverable Debts Allowance for Receivables Accounts Receivable Recovered Debts Accounts Payable Loan [5%) Drawings Bank [Debit Balance) Capital 120,000 3,000 11,000 85,000 220,000 300 900 69,000 30,000 3,100 4,500 700 1,700 400 35,000 100 12,900 220,000 26,000 10,500 271,300
IDBFN001 Financial Accounting 1 Notes: 1. Buildings are on a 50-year lease and are amortised (depreciated) accordingly each year. 2. Inventory at 31st December 2021 was valued at £72,900. 3. Salaries are constant at £2,500 per month. 4. Plant and Equipment is depreciated at 10% straight line and Fixtures at 10% reducing balance. 5. Vehicles are depreciated at 20% straight line. On 1st November 2021 Gerrard disposed of a vehicle acquired in 2019 for £5,000. Sale proceeds were £1,000. (Note, no depreciation is charged on assets in the year of disposal and none of the transactions relating to the disposal have been recorded) 6. Gerrard is due to pay Commission of 1% on all sales for the year. 7. The Receivables profile is aging which means that Gerrard believes the Allowance for Receivables should be increased to £600. 8. Gerrard has a year-end electricity bill unpaid of £500. 9. The loan interest is outstanding at the year end. Required: [35] Prepare Gerrard and Family's Statement of Profit or Loss for year ended 31st December 2021 and a Statement of Financial Position as at that date.
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