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Additional information: Required: Prepare the following for Zuzi's General dealers for the financial year ending 31 December 2020: 2.1. The statement of profit or loss
Additional information:
Required: Prepare the following for Zuzi's General dealers for the financial year ending 31 December 2020: 2.1. The statement of profit or loss and other comprehensive income, and 2.2. Prepare the columns for only Vehicles and equipment as they would be shown in the property, plant and equipment code. Columns for land and buildings and total are not required.
K 390000 Ustofpumant balance 31 December 2020. Properly. planland equipment tood additional Information 1) Total accumulated depreciation at 1 January 2020 Fixed deposit Third Bank. Inventory: Trade goods.. Trade debtons 25 820 100 000 117 000 10 400 Allowance for credit losses 800 Bank... 108 200 1 200 283 400 Cash float. Capital Zizu Drawings Long term borrowing: DLM Finance. Trade creditors Sales 28 480 60 000 19 100 763 580 Sales retums 2 400 Page 3 of 8 Rental income 31200 Sellement discounts received 1300 Interest on investment 10 000 Credit losses recovered . Cosle of sales 240 330 800 Credil losses 1100 Packing materials used. Insurance 400 Telephone 300 Advertisements Settlement discounts granted 4000 Other expenses 70 2010 CLOSE 31 Dec. 2020- NOGLE Deprecleon 1 Jan. 2020-R wype Property, pland quipment NIA 300 000 wabung 22 400 BO 000 Vehicle 3420 18 000 Equipment Equipment at cost-R18 000: includes equipment bought for cash at a cost of R4 000 on 1 July 2020. Provide depreciation for the year for all property, plant and equipment as follows: Equipment: 10% per year on the diminishing balance method. Vehide: 20% per year on the diminishing balance method. 2. Results of a physical stock taken on 31 December 2020 revealed that: 21 Trading goods on hand was R114 500, and 22 Packing material on hand was R1 960. 3. Advertisement cost of R4 000 is exclusively for an advertising campaign covering the period 1 May 2020 to 28 February 2021. 4. Rental income was received from Zizu's only tenant. The rent includes the January 2021 rental. Rent remained constant over the full period. Page 4 of 8 5. The long term borrowing was taken on 30 September 2020. Interest is payable every 8 months at a rate of 10% per year. B. Interest on the fixed deposit at Third Bank has not yet been received for November 2020 and December 2020. Interest is calculated at 1299 per year. 7. Insurance includes an amount of Ri 500 paid for a 12 month penod ending on 31 October 2021 8. The December 2020 telephone account of ROBO has not yet been recorded, 9. A debtors account of Ri 000 has long been outstanding The debtors insolvent estale paid bow of the debt The bulance needs to be written 10. It was agreed that the allowance for creation ogount needs to be adjusted to show a bulance of only RISOOStep by Step Solution
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