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Additional information and adjustments Physical stocktaking on 2 9 February 2 0 2 4 revealed the following inventories: 1 . 1 Trading inventory, R 2
Additional information and adjustments Physical stocktaking on February revealed the following inventories: Trading inventory, R Stationery, R Rent has been paid up to January Make the necessary adjustment. A debtor who owed R was declared insolvent. His account must now be written off. The provision for bad debts must be decreased by R Provide for the outstanding interest on the loan from Mi Bank, R The telephone account for February was due to be paid on March R According to the bank statement service fees of R were levied by the bank. This has not been recorded. Received R from H Lino whose account was previously written off. No entry was made for this. A debtor whose account was overdue for one month must be charged interest at pa on the account balance of R Provide for depreciation as follows: On vehicles at per annum using the diminishing balance method. On equipment at per annum on costAnswer ALL questions. MARKS QUESTION Marks REQUIRED Prepare the Statement of Comprehensive Income of Ryobi Traders for the year ended February INFORMATION RYOBI TRADERSPREADJUSTMENT TRIAL BALANCE AS AT FEBRUARY Debit RCredit RBalance sheet accounts sectionCapitalDrawingsVehicles at costEquipment at costAccumulated depreciation on vehicles,,Accumulated depreciation on equipment,,Trading inventory,Debtors control,Provision for bad debts,,BankCreditors control,,Loan: Mi Bank paNominal accounts sectionSalesCost of sales,Sales returns,Salaries and wages,Motor expenses,Electricity and water,InsuranceBad debts,Stationery REQUIRED Prepare the Statement of Comprehensive Income of Ryobi Traders for the year ended February INFORMATION Additional information and adjustments Physical stocktaking on February revealed the following inventories: Trading inventory, R Stationery, R Rent has been paid up to January Make the necessary adjustment. A debtor who owed R was declared insolvent. His account must now be written off. The provision for bad debts must be decreased by R Provide for the outstanding interest on the loan from Mi Bank, R The telephone account for February was due to be paid on March R According to the bank statement service fees of R were levied by the bank. This has not been recorded. Received R from H Lino whose account was previously written off. No entry was made for this. A debtor whose account was overdue for one month must be charged interest at pa on the account balance of R Provide for depreciation as follows: On vehicles at per annum using the diminishing balance method. On equipment at per annum on cost 
Additional information and adjustments
Physical stocktaking on February revealed the following inventories:
Trading inventory, R
Stationery, R
Rent has been paid up to January Make the necessary adjustment.
A debtor who owed R was declared insolvent. His account must now be written off.
The provision for bad debts must be decreased by R
Provide for the outstanding interest on the loan from Mi Bank, R
The telephone account for February was due to be paid on March R
According to the bank statement service fees of R were levied by the bank. This has
not been recorded.
Received R from H Lino whose account was previously written off. No entry was
made for this.
A debtor whose account was overdue for one month must be charged interest at pa
on the account balance of R
Provide for depreciation as follows:
On vehicles at per annum using the diminishing balance method.
On equipment at per annum on costAnswer ALL questions. MARKS QUESTION Marks REQUIRED Prepare the Statement of Comprehensive Income of Ryobi Traders for the year ended February INFORMATION RYOBI TRADERSPREADJUSTMENT TRIAL BALANCE AS AT FEBRUARY Debit RCredit RBalance sheet accounts sectionCapitalDrawingsVehicles at costEquipment at costAccumulated depreciation on vehicles,,Accumulated depreciation on equipment,,Trading inventory,Debtors control,Provision for bad debts,,BankCreditors control,,Loan: Mi Bank paNominal accounts sectionSalesCost of sales,Sales returns,Salaries and wages,Motor expenses,Electricity and water,InsuranceBad debts,Stationery REQUIRED
Prepare the Statement of Comprehensive Income of Ryobi Traders for the year ended February
INFORMATION Additional information and adjustments
Physical stocktaking on February revealed the following inventories:
Trading inventory, R
Stationery, R
Rent has been paid up to January Make the necessary adjustment.
A debtor who owed R was declared insolvent. His account must now be written off.
The provision for bad debts must be decreased by R
Provide for the outstanding interest on the loan from Mi Bank, R
The telephone account for February was due to be paid on March R
According to the bank statement service fees of R were levied by the bank. This has
not been recorded.
Received R from H Lino whose account was previously written off. No entry was
made for this.
A debtor whose account was overdue for one month must be charged interest at pa
on the account balance of R
Provide for depreciation as follows:
On vehicles at per annum using the diminishing balance method.
On equipment at per annum on cost
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
