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

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.

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