Mr Slow Dohe died early in March 20x6 before having drafted his financial statements for the year ended 28 February 20x6.

You are able to establish some information from his books and records:

1 The trial balance as at 28 February 20x5 was:

2. A list of receivables as at 28 February 20x6 showed a total balance of R5 670, but receivables totalling R1 005 should be written off.

3. Drawings for the year, R8 335.

4. Inventory at 28 February 20x6 was valued at R6 900.

5. Accounts payable and accruals at 28 February 20x6, R5 175.

6. These transactions were recorded in the furniture account:

– Purchases for R650.

– Sold furniture (cost R500 and accumulated depreciation R490) for R50.

– Furniture and equipment on hand at year end is to be depreciated by R595.

7. The bank account at 28 February 20x6 showed an overdraft of R1 280. A deposit of R3 400 (directly with the bank) was only credited by the bank account on 1 March 20x6.

You are required to:

1. Calculate the net profit/loss for the year. (Calculations must be clear and neat.)

2. Draft the statement of financial position as at 28 February 20x6.

Transcribed Image Text:

Slow Dohe TRIAL BALANCE AS AT 28 FEBRUARY 20x5 Fol. Debit B1 B2 B3 B4 B5 B6 B7 Details Capital Accumulated depreciation: Furniture and equipment Inventory Accounts receivable Accounts payable Bank Furniture and equipment (at cost) 4 450 00 3 680 00 2 860 10 990 00 00 Credit 5 000 00 1 750 00 3 950 00 290 00 10 990 00