(a)[15]
Prepare the income statement for the accounting year ended 31 July 2020.
(b)[5]
Advise Haziq on whether he ought to keep a double entry bookkeeping system for his business. Support your answer with two advantages and two disadvantages.
Accounting 0452 · IGCSE · Incomplete records
Incomplete records — practice question
Haziq has not kept complete accounting records for his business.
Haziq supplied the information below for the year ended 31 July 2020.
Balances on 1 August 2019 and 31 July 2020:
Bank loan $6000 / $4500
Inventory $8400 / ?
Non-current assets at net book value $35580 / $32450
Rent prepaid $240 / -
Trade payables $6280 / $7460
Wages accrued - / $610
Bank account summary for the year ended 31 July 2020:
Sales receipts $166000
Balance c/d $6600
Payments to credit suppliers $96220
Bank loan repayments $1500
Bank loan interest $300
Rent $2640
Wages $41400
General expenses $10890
Drawings $17500
Additional information:
1 The gross margin was 40%.
2 All sales were for cash and all cash received was banked.