ASSIGNMENT 2

HP Entity's current reporting dates 21 December 2014 O 1 December 2014 the following bulances, among others appeared in the records of HP Enerty.

Sales

Note

Dr

Cr

2120 000

1:443-000 69.000

Cost of sales

Repairs

Water and electricity

Insurance

3

206 950

Bad debts Bank charges

4

132 000

88 800 18 580

Rent income

7

163 000

VAT Input

154 400

193-160

1:020-000

48 000

364 800 315 920

8 9

323 760

267 280 432 430

5

VAT Output

Machinery-cost price (useful life 5 years Accumulated depreciation - Machinery (1 Jan 2014)

Fived tem deposit

Trading inventories Receivable A

Receivable B Bank

Payable KK

Payable TT

Loan-LTL Motors Payable Jozi

Drawings

Retained eamings-1 January 2014

Capital

2

135 900

9

111.300

10

3.&.11

23 940

12

168 000

489 600

13

1 800 000

5:594900

5:504 900

The following transactions/events still have to be recognised in the records of HP Entity:

12 Cash sale of trading inventories totalling R412 452 were made in December. The cost price

of these inventories was R342 000.

2 Repairs were done by Payable KK and an invoice of R28 500 payable on or before 15 January 2015 was delivered.

3. Received statements from Payable Jozi for R20 520 in respect of the water- and electricity

utilisation in December 2014. This amount is payable 30 days from statement date. 4. The insurance premium of R17 100 for December was paid to the insurance company on

3 December by means of an electronic transfer of funds 5. The credit manager gave authorisation to write off Receivable B's debt as irrecoverable

as

he has been declared insolvent

6. On 4 January 2015 the bank statement was received from the Bank. The statement indicated bank charges of R13 680 and interest charge of R10 260 for the month of December 2014. The interest charge relates to a bank overdraft experience during the early part December 2014

7. On 1 December HP Entity's entered into another sub-letting agreement for a portion of the entity's property to Hyatt for a period of 2 years Lease payment of R21 660 for December,