24 (42 MARKS: 50 MINUTES) Ramuk Enterprises (Ramuk) sells biodegradable containers used for packaging farm products. The business has a financial year-end of 31 March. The bookkeeper of Ramuk extracted the following pre-adjustment trial balance as at 31 March 2022: Ramuk Enterprises: Pre-adjustment trial balance (extract) as at 31 March 2022 PPE: Land Revaluation surplus PPE: Vehicles Inventory Sales income Sales returns Trade receivables Bad debts expense Bad debts recovered income Allowance for doubtful debts DR 1 670 000 CR 100 000 850 000 29 860 1 301 400 47 108 109 000 1 450 560 180 Additional information 1. The land had a fair value of R1 710 000 on 31 March 2022. 2. Ramuk purchased two identical vehicles on 1 July 2021. Ramuk reliably estimates that these vehicles will be used for 5 years, after which they are each expected to be sold for R90 000 if R15 000 is spent to refurbish each vehicle. 3. One of the vehicles was involved in a small accident and has been slightly damaged. On 31 March 2022, this vehicle had a value in use of R375 000 and it was estimated that it could be sold for R380 000 if R40 000 was spent in repairing it. 4. During the inventory count on 31 March 2022, it was established that the total cost of inventory on hand amounted to R28 560. Included in this amount is inventory costing R1 940 that is damaged, and if it is repaired at a cost of R250, it could be sold for an estimated R1 430. 5. All sales made during the year were n credit, and all customers who returned sales were issued credit notes. During the year, the bookkeeper has recorded bad debts recovered and bad debts expense as they have arisen. However, one bad debt that has not yet been captured relates to a debtor who owes R19 000 due to sales made in the current financial year. This debtor has gone insolvent. It is reliably estimated that Ramuk will receive 30c in the rand in June 2022. Ramuk has decided to write off the remainder of the debt. 6. The accountant reliably estimates that it is unlikely that the business will collect 3% of the closing balance on trade receivables. You are required to: A. Prepare adjusting entries required as at 31 March 2022. Ignore dates and closing entries. Number each entry using the number of the additional information point to which it relates. If you believe an adjusting entry is not required, state this, and explain your reason. (27 marks) B. Prepare the trade receivables account as it would appear in the general ledger of Ramuk for the year ended 31 March 2022. Ramuk had a trade receivables balance amounting to R89 800 as at 31 March 2021. Balance or close off the account as required. Ignore dates. (8 marks) C. Prepare the assets sections of the statement of financial position of Ramuk as at 31 March 2018. (7 marks)