CONTINUOUS ASSESSMENT FOR DAC 101 FINANCIAL ACCOUNTING 1ST SEMESTER 2023
Youto Enterprises is in business selling herbs and spices. You have been provided with the following
information for the year ended 31 December 2022
1.Trial balance as at 30 December 2021
$
Sales
Purchases
Premises
Accumulated depreciation 1 January 2021
Plant at cost
Accumulated depreciation 1 January 2021
Wages and salaries
Rent and rates
Inventory 1 January 2021
Capital 1 January
Drawings
Carriage on purchases
Trade receivables
Trade payables
Irrecoverable debts
Rent income
Bank balance
Mortgage (10% interest per annum)
Sales returns
Purchases returns
Suspense
99,850
100,000
25,000
18,000
2,300
8,900
7,500
5,000
80,000
25,000
4,000
27,500
16,400
5,000
2,000
18,950
30,000
1,200
301,950
•
•
•
•
•
$
126,000
800
500
301,950
By the end of year two employees were not paid December salary which amounted to $500
in total.
Youto was advised by the landlord that with effect from 1 January 2022 rent will be $9,000
per annum. Two months rent for 2022 was paid in 2021
Mortgage interest is still outstanding.
The Accountant has decided to create an allowance for doubtful debts of 5% of the
outstanding trade receivables.
Depreciation is to be provided as follows:
Depreciation is to be provided at 2% of cost on premises, and at 10% of cost on plant
2.The suspense is a result the sales account which was understated by $500.
3.The information below relates to the bank transactions for the month of December.
•
Balance as per cash book before below items was $17,486
-Bank charges $125
-Stop order:ZIMURA $750
-Dishonoured cheque $1,378
-Credit transfer:Weeks Ltd $789
-Undeposited cheques amounted $3,344
-Outstanding cheques amounted $1,234
From the above you are required to write a report to Mr S.Nhera with respect to the following:
i)Performance of the business(Financial statements)
ii)Status of trade receivables and trade payables(Control accounts)
iii)Cash book balance in relation to the bank statement balance(Bank reconciliation statement)
iv)Suspense account
For clarification please do not hesitate to come to me. I am here for you.
I Hope you are going to enjoy all studies.
S.Shilline
0773060192
ASSIGNMENT IS DUE 15/4/23