Alif is a trader. He does not maintain a full set of accounting records but the following information is available. 1 Summarised bank transactions for the year ended 31 March 2016 Receipts $ Payments $ Trade receivables 32000 Trade payables 29000 Cash sales banked 7400 Purchase of equipment 2500 Interest receivable 600 Rent 8000 Other operating expenses 6500 2 All cash sales were banked on the day of receipt with the exception of the following which were paid out of cash receipts. Wages $ 9000 Drawings 11500 3 Balances at: 1 April 2015 $ 31 March 2016 $ Equipment (net book value) 11000 10500 Inventory 12000 11500 Trade receivables 17600 18350 Trade payables 9750 7950 Wages owing 300 450 Rent prepaid 500 700 Bank 3950 Debit ? Capital 35000 ?

Mark scheme

Marking points from the official mark scheme (May/June 2016). The mark or mark type is shown in brackets.

1. [4] (a)(i) Sales revenue: Trade receipts 32000 + Cash receipts (7400 + $9000 + $11500) $27900 (1) = $59900. Trade receivables at 31 March $18350 (1). Subtotal $78250. Less Trade receivables at 1 April ($17600) (1). Total Revenue $60650 (1of).
2. [2] (a)(ii) Purchases: Trade payments $29000 + Trade payables at 31 March $7950 (1) = 36950. Less Trade payables at 1 April (9750) (1). Total Purchases $27200 (1of).
3. [8] (b) Alif Income Statement for the year ended 31 March 2016: Revenue $60650; Opening inventory $12000; Purchases $27200; Subtotal $39200; Closing inventory (11500); Cost of sales (27700) (1of); Gross profit $32950; Plus Other income: Interest receivable $600 (1); Subtotal 33550; Less Rent (8000 + $500(1) –$700(1)) $7800; Other operating expenses $6500; Wages ($9000 –$300(1) +$450(1)) $9150; Depreciation ($11+2.5(1)-10.5(1)) $3000; Total expenses ($26450); Profit for the year $7100
4. [6] (c) Alif Statement of Financial Position at 31 March 2016: Non-current assets: Equipment $10500 (1); Current assets: Inventory $11500; Trade receivables $18350; Other receivables: Prepaid rent $700; Bank ($3950 + $40000 - $46000) $2050 (2) (1of); Total Current assets $30550 (1); Total Assets $41050; Financed by: Capital $35000; Profit for the year $7100; Subtotal 42100; Less Drawings (11500) (1); Capital at end $30600 (1of); Current liabilities: Trade payables $7950; Other payables: Wages $450 (1); Total Current Liabilities $10450; Total Capital and Liabilities $41050