question archive Edexcel IGCSE Accounting May 2021 Edexcel Latest IGCSE/O Level Accounting Paper 1 Amira, a sole trader, does not keep full accounting records
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Edexcel IGCSE Accounting May 2021 Edexcel Latest IGCSE/O Level Accounting Paper 1
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.
Prepare the statement of affairs (statement of financial position) at 31 March 2021.