5
2 Stalla started trading on 1 April 2021. All receipts are paid into the bank and all payments are made
from the bank. She has not kept a full set of books but has provided the following information.
Summary of receipts and payments for the year ended 31 March 2022
Receipts
Capital introduced 8 000
Loan received (repayable 2027) 5 000
Sales (all cash) 36 000
Payments
Trade payables 17 850
Fixtures and fittings 12 000
General expenses 1 920
Rent and insurance 7 100
Drawings ?
Bank balance at 31 March 2022 2 330
REQUIRED
(a) Record the total receipts and total payments to Stalla’s bank account showing the cash
drawings for the year ended 31 March 2022. Balance the bank account and bring the balance
down on 1 April 2022.
Stalla
Bank account
Date Details $ Date Details $
............. ................................. ............... ............. ................................ ...............
............. ................................. ............... ............. ................................ ...............
............. ................................. ............... ............. ................................ ...............
............. ................................. ............... ............. ................................ ...............
............. ................................. ............... ............. ................................ ...............
............. ................................. ............... ............. ................................ ...............
............. ................................. ............... ............. ................................ ...............
[4]
[Turn over
6
During the year ended 31 March 2022, Stalla took goods from the business for her own personal
use. The selling price of these goods is $3375. Her mark-up is 25%.
REQUIRED
(b) Calculate Stalla’s total drawings for the year ended 31 March 2022.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
Stalla has provided a list of balances at 31 March 2022.
Fixtures and fittings (net book value) 10 800
Inventory 2 150
Prepaid rent 500
Balance at bank 2 330
Trade payables 1 875
Loan (repayable 2027) 5 000
Capital ?
REQUIRED
(c) Prepare a statement of affairs to calculate Stalla’s capital at 31 March 2022.
7
Stalla
Statement of Affairs at 31 March 2022
$ $
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
......................................................................................... ....................... .......................
[5]
(d) Calculate Stalla’s profit for the year ended 31 March 2022.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [4]
[Turn over
8
Stalla is now considering whether she should start to sell at least some of her goods on credit.
REQUIRED
(e) Advise Stalla whether or not she should start selling on credit terms. Justify your answer.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [5]
[Total: 20]
