Question

18.6 At 31 December 20X2 the following matters require inclusion in a company's financial statements:

1
On 1 January 20X2 the company made a loan of $12,000 to an employee, repayable on 30
April 20X3, charging interest at 2 per cent per year. On the due date she repaid the loan and
paid the whole of the interest due on the loan to that date.
The company has paid insurance $9,000 in 20X2, covering the year ending 31 August 20X3.
In January 20X3 the company received rent from a tenant $4,000 covering the six months to 31
December 20x2.
23
For these items, what total figures should be included in the company's statement of financial position at
31 December 20X2?
Receivables and prepayments
ABCO
D
$
22,000
22,240
10,240
16,240
Payables and accruals
$
240
NIL
NIL
6,000
(2 marks)

Answer 1

To determine the total figures on the company's statement of financial position at 31 December 20X2, the loan, insurance payment, and rent received should be considered. The total figures for receivables and prepayments should be $22,000, while payables and accruals should be nil.

Step-by-step explanation:

To determine the total figures that should be included in the company's statement of financial position at 31 December 20X2, we need to consider the given items and their respective balances.

1. The loan made to the employee of $12,000 should be included as a receivable, as it is due to be repaid. The interest charged on the loan should also be included as interest receivable.
2. The insurance paid of $9,000 should be included as a prepayment, as it covers the period ending 31 August 20X3.
3. The rent received from the tenant of $4,000 should be included as a receivable, as it covers the period ending 31 December 20X2.

Therefore, the total figures for receivables and prepayments in the company's statement of financial position at 31 December 20X2 should be $22,000.

Regarding payables and accruals, the specific information provided does not indicate any balances for payables and accruals. Therefore, the total figures for payables and accruals in the company's statement of financial position at 31 December 20X2 should be nil (zero).