Adjustments 1. Physical stock taking showed inventory valued at R180 000 as at 31 December 2017 2.
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Question:
Adjustments
1. Physical stock taking showed inventory valued at R180 000 as at 31 December 2017
2. Depreciation must be provided for as follows
• Motor vehicles: 20% per annum on the cost price
• Machinery: 15% per annum on reducing balance method
3. The loan from VBS Bank was acquired on 31 December 2016, and the interest was payable at the end of six months at 15% per annum. No interest has been paid as yet. 4. An amount of R2 000 has to be written-off as the debtor become insolvent
5. An insurance amount of R300 had been paid in advance for the month of January 2018.
Required:
Prepare the Statement of Comprehensive Income for the year ended 31 December 2017 (10 marks)
Prepare the Statement of Financial Position as at 31 December 2017 (10 marks) a. b. 2
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
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