(20 Marks) QUESTION 5 Prepare the Statement of Financial Position as at 31 December 2020. The notes to the financial statements are not required. Show workings in the spaces provided. INFORMATION The information given below was extracted from the accounting records of Merewent Ltd on 31 December 2020 (the end of the financial year) MEREWENT LTD PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2020 Debit (R) Credit (R) Balance Sheet Accounts Section 320 000 Ordinary share capital Retained earnings 40 000 Land and buildings 540 000 Vehicles (cost) 130 000 100 000 Equipment (cost) 50 000 Accumulated depreciation on vehicles Accumulated depreciation on equipment 40 000 Debentures (10% p.a.) 260 000 Debtors control 36 000 Provision for bad debts 2 000 Bank 23 000 Creditors control 93 000 29 000 South African Revenue Services (Company tax) Nominal accounts section 757 000 Sales 110 000 Opening inventory Purchases 411 000 Sales returns 5 000 Purchases returns 33 000 Carriage on purchases 8 000 Maintenance 7 000 Municipal rates 5 000 Carriage on sales 10 000 10 000 Carriage on sales 80 000 Wages and salaries 1 000 Stationery Bad debts 2000 Sundry expenses 7000 Insurance 3 000 Telephone 7 000 Water and electricity 8 000 Directors' fees 48 000 Auditor's fees 5 000 20 000 Ordinary share dividends 1 595 000 1 595 000 Adjustments and additional information 1. Physical stocktaking on 28 February 31 December 2020 revealed the following inventories: 1.1 Trading inventory, R90 000 1.2 Stationery, R200 2. A notice from the municipality reflected an amount of R200 that was paid for municipal rates for the next financial year. F3 FS F6 F7 F8 F9 F10 F11 F12 $ % & 5 6 8 3. Depreciation must be provided for as follows: 3.1 On vehicles, R16 000. 3.2 On equipment, R10 000. 4. A debtor, who owed R1 000, was declared insolvent. Received R400 of the amount owing from his insolvent estate. The balance of his account must now be written off. No entries were made for these transactions. 5. The insurance total includes a premium of R100 that was paid for January 2021. 6. An amount of R2 000 was due to be paid for audit fees on 02 January 2021. 7. The provision for bad debts must be increased to R2 200. 8. Provide for interest on debentures that is yet to be paid, R26 000. 9. The company tax for the year amounted to R33 000. The profit after tax AFTER taking the above information into account was R75 700. 10. The final dividend declared on 31 December 2020 amounted to R50 000