mentals of Accounting SEM 2 AY 2021/2022 Time left 2:16:3 Alesha Harrison is a sole trader who operates a pastry shop in

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Mentals Of Accounting Sem 2 Ay 2021 2022 Time Left 2 16 3 Alesha Harrison Is A Sole Trader Who Operates A Pastry Shop In 1 (69.54 KiB) Viewed 49 times

Mentals Of Accounting Sem 2 Ay 2021 2022 Time Left 2 16 3 Alesha Harrison Is A Sole Trader Who Operates A Pastry Shop In 2 (47.97 KiB) Viewed 49 times

Mentals Of Accounting Sem 2 Ay 2021 2022 Time Left 2 16 3 Alesha Harrison Is A Sole Trader Who Operates A Pastry Shop In 3 (57.11 KiB) Viewed 49 times

mentals of Accounting SEM 2 AY 2021/2022 Time left 2:16:3 Alesha Harrison is a sole trader who operates a pastry shop in Iguana Lane. She rents a small section of the shop to Liam Carr, for $450 per month. Liam sells iced coffee and occupies the rented space for nine (9) months of accounting year. The following trial balance was as at December 31, 2021. Particulars DR ($) CR($) Furniture 70,000 Motor Vehicle 55,000 Purchases 51,100 Wages 5,000 Bad debts 2,000 Donations to charity 1,250 3,800 Provision for depreciation - Furniture Provision for depreciation - Motor Vehicle 2,000 Capital 50,000 Loan 27,000 Bank 5,000
Rent received from Liam Carr 3,050 Discounts 800 900 Returns 700 1,200 600 Carriage inwards Rent paid 7.000 Provision for bad debts 2,800 31,300 Accounts payable Drawings Stock at January 1, 2021 2,300 4,300 Cash 3,500 Accounts receivable 40,000 Sales 130,000 Insurance 3.500 252.050 252.050
Notes a) Insurance owing was $500, wages were prepaid $300 b) The provision for bad debt is to be adjusted to 5% of accounts receivable c) Stock at the yearend was valued at $5,700; however it appears that an additional amount, which is material, was omitted from the accounts of $1,400. The amount was deemed should be accounted for in the financial statements. d) Furniture is to be depreciated at 5% per annum using the reducing balance method and motor vehicle is to be depreciated at 10% based on the straight line method. Required: a) Prepare Alesha Harrison's Statement of Profit or Loss for the year ended December 31, 2021 b) Prepare Alesha Harrison's Statement of Financial Position as at December 31, 2021 c) Alesha and Liam have been in discussions and have indicated their interest in changing their different business types into a partnership because they have been hearing that there are several advantages to be gained. They are unsure as to what these advantages are. As an accounting student EXPLAIN three (3) advantages and two (2) disadvantages of a partnership