Tanvir does not keep a full set of double entry accounts. The following information is available for the year ended 30 April 2011. Summarised Bank account $ $ Receipts from customers 60 500 Balance b/d 100 Sale of non-current asset 750 Payments to suppliers 34 900 Wages 15 000 Lighting and heating 2 500 Drawings 5 000 Purchase of non-current asset 8 000 General expenses 6 000 Balance c/d 10 250 71 500 71 500 Additional information: 1 May 2010 30 April 2011 $ $ Inventory 5 250 11 000 Trade receivables 9 750 8 400 Trade payables 10 500 9 300 Non-current assets (book value) 40 000 42 000 Lighting and heating 600 Prepaid 250 Accrued 6% Bank loan repayable 30 April 2016 20 000 20 000 Capital 25 000 ? The non-current asset sold during the year had a book value of $1 000. REQUIRED

Mark scheme

Marking points from the official mark scheme (May/June 2011). The mark or mark type is shown in brackets.

1. [1] Sales: Bank received $60 500
2. [1] Sales: Add Trade receivables 30 April $8 400
3. [1] Sales: Less Trade receivables 1 May ($9 750) = $59 150
4. [1] Purchases: Bank payments $34 900
5. [1] Purchases: Add Trade payables 30 April $9 300
6. [1] Purchases: Less Trade payables 1 May ($10 500) = $33 700
7. [1of] Income Statement: Revenue (sales) $59 150
8. [1of] Income Statement: Cost of sales (Opening inventory $5 250 + Purchases $33 700 - Closing inventory $11 000) = ($27 950)
9. [1of] Income Statement: Gross profit $31 200
10. [1] Income Statement: Light & heat ($2 500 - $600 prepaid + $250 accrued) = $2 150
11. [1] Income Statement: Loan interest (6% of $20 000) = $1 200
12. [1] Income Statement: Loss on sale of non-current asset ($1 000 book value - $750 sale price) = $250
13. [2] Income Statement: Depreciation (Opening NBV $40 000 - $1 000 (sold) + $8 000 (new) - Closing NBV $42 000) = $5 000
14. [1of] Income Statement: Profit for the year $400
15. [1] Statement of Financial Position: Trade receivables $8 400
16. [1] Statement of Financial Position: Accruals $1 450 (sum of accrued expenses - only L&H $250 given)
17. [1] Statement of Financial Position: 6% Bank loan ($20 000)
18. [1of] Statement of Financial Position: Capital ($25 000 + $400 Profit - $5 000 Drawings) = $20 400
19. [1] Statement of Financial Position: Drawings ($5 000)