Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CK TRADERS AN EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 OCTOBER 20.9 R Capital. Drawings. Trade receivables control. Trade payable control Land and

CK TRADERS

AN EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 OCTOBER 20.9

R

Capital.

Drawings.

Trade receivables control.

Trade payable control

Land and building..

Machinery (at cost)

Accumulated depreciation: Machinery (1 November 20.8).

Vehicle (at cost).

Accumulated depreciation: Vehicle (1 November 20.8)..

Inventory: Trading (1 November 20.8)

Bank (Favourable).

Petty cash

Cash float

Loan from ATM Bank.

Fixed deposit: TB Bank.

Allowances for credit losses.

Rent income

Interest on fixed deposit

Advertising..

Packaging material

Stationery

Credit losses...

Salaries and wages

Interest on loan from ATM Bank..

Water and electricity..

Telephone expenses.

350 000

2 500

180 560

129 875

73 722

1 075 308

?

125 900

12 590

4 800

15 909

254

2 542

258 564

120 782

1 530

20 928

7 247

23 580

8 910

3 540

650

98 000

20 257

9 456

1 984

Additional information with regards to adjustments that you still need to take into account.

(a) CK Traders sublets part of its building to B Silver. B Silver paid R20 928 on the 1 November 20.8 for 15 months. The rental agreement stipulated that CK Traders will increase the rental amount to R1 688 from 1 August 20.9.

(b) CK Traders deposited R120 782 into a fixed deposit account with TB Bank on 1 February 20.9, at an interest rate of 12% per annum. The interest is receivable twice per annum in June and December.

(c) On 1 November 20.8, CK Traders entered into an advertising contract with Kgomotso advertising agency for a period of 2 years for a total amount of R23 580. CK Traders paid R23 580 to Kgomotso advertising agency on 1 November 20.8 to cover the full contracted period.

(d) A physical inventory count revealed that the following was on hand on 31 October 20.9:

Inventory R7 775

Packaging material R1 990

Stationery R260

(e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at 11,5% per annum. The loan repayment schedule indicate that the capital repayment of the loan would be made in four equal instalments as follows:

Instalments

Amount

Repayment date

First instalment

R64 641

30 April 20.10

Second instalment

R64 641

31 October 20.10

Third instalment

R64 641

30 April 20.11

Fourth instalment

R64 641

31 October 20.11

(f) You may assume that the total comprehensive loss for the year, after all the above adjustments have been considered, amounted to R227 519.

The total amount for non-current liabilities to be shown in the statement of financial position as at 31 October 20.9 will be

  • A.

    R193 923

  • B.

    R288 299

  • C.

    R285 821

  • D.

    R129 282

  • E.

    R258 564

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Financial Markets And Institutions

Authors: Glen Arnold

1st Edition

0273730355, 9780273730354

More Books

Students also viewed these Accounting questions

Question

Focus on the interview.

Answered: 1 week ago