CK TRADERS

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

	R
Capital	350 000
Drawings	2 500
Trade receivables control...	180 560
Trade payable control.	129 875
Inventory: Trading (1 November 20.8).	4 800
Bank (Favourable)...	15 909
Petty cash.	254
Cash float..	2 542
Loan from ATM Bank..	258 564
Land..	60 000
Buildings	13 722
Machinery (at cost)..	1 075 308
Accumulated depreciation: Machinery (1 November 20.8)..	?
Vehicle (at cost)...	125 900
Accumulated depreciation: Vehicle (1 November 20.8)	12 590
Fixed deposit: TB Bank..	120 782
Allowances for credit losses..	1 530

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

(a) CK Traders acquired machinery CK002 on 1 November 20.6 for an amount R1 075 308 and machinery CK002 was only available for use from 1 February 20.7 due to site preparation and installation that needed to be performed. On 31 August 20.9, machinery CK002 was taken out of production and was auctioned on the same day for a cash amount of R455 040. Depreciation on machinery CK002 must be provided at a rate of 20% using the straight-line method.

(b) CK Traders has only one vehicle which was purchased on 1 November 20.7 for an amount of R125 900 and the accounting policy indicate that depreciation on vehicles must be provided at a rate of 10% using the reducing balance method.

The total carrying amount for vehicles to be shown in the statement of financial position as at 31 October 20.9, will be

NB: Instructions

1. Use a full stop to indicate any decimals (eg: 1000.01)

2. Only show the amount, do not show the R (eg: 12141.72)

3. Round the amount off to the nearest Rand (eg: 12141.72 is 12142)

Answer: