12.11 PRACTICAL LUI Accounting records of Zanzi Dealers, a general dealer trading in Pretoria 2008 R 50000 12000 55.000 500 500 25000 Capital Drawings Land and buildings at cost price Vehicles at cost price Accumulated depreciation Vehicles 8% Fixed deposit: Capex Bank Inventory Debtors Allowance for credit losses Prepaid insurance Accrued interest on investment Bank (favourable) 15% Loan: Prestige Bank Creditors Accrued interest on loan Cost of sales (31 200-35300) Sales Sales returns and allowances Interest on investment Purchases Purchases returns and allowances Salaries and wages Rent expense Advertising Insurance Electricity Depreciation Interest on loan Credit losses 15000 12502 22.500 4 100 282 380 4500 3.000 95000 1300 60500 6.500 1500 23 800 1100 22500 200 Additional information: 1 value of inventory. The entity uses the periodic inventory system. 2 on the cost price 3. 4. Ignore VAT The following post-augment al balance was prepared on 31 December 200 Opening inventory amounted to R31 200. This amount has already been bleno Sunt in the above trial balance. The first-in-first-out formula is used to coleg Land and buildings are not depreciated. Vehicles are depreciated at 20% per The allowance for credit losses is maintained at 3% of outstanding debtors Prepare the financial statements and appropriate notes of Zanzi Dealers for the year ending PRACTICAL EXAMPLE 1 - ANSWER SHEET STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDING 31 DECEMBER 200X You 31 December 200X ZANZI DEALERS 200X R Notes Net sales: Gross sales Less: Sales returns and allowances Less Cost of sales: Opening inventory Add: Purchases Less: Purchases returns and allowances Available for sale Less: Closing inventory Gross profit 188 260 Income: Interest on investment Operating expenses: Salaries and wages Rent expense Advertising Insurance Electricity Depreciation Interest on loan Credit losses Profit for the period 49 900 0