Question
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
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