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Enchanted Ltd has an authorised share capital of 6 0 0 0 0 0 ordinary shares. Their financial year ends on the last day of
Enchanted Ltd has an authorised share capital of ordinary shares. Their financial year ends on the last day of February. The following preadjustment trail balance appeared in the books of Enchanted Ltd on February
Pre adjustment trial balance of Enchanted Ltd on February
Details Fol Debit R Credit R
Statement of financial Position
Ordinary share capital
Retained earnings
Land and buildings
Vehicles
Accumulated depreciation: Vehicles
Trading inventory
Trade receivablles Allowance for credit losses
Bank
SA Revenue Service income tax
Trade payables
Mortgage loan
Nominal account section
Sales
Cost of sales
Credit losses
Commission received
Bank charges
Rent income
Stationery
Credit losses recovered
Interest on mortgage loan
Sales returns
Insurance
Telephone
Water and electricity
Salaries and wages
Ordinary share dividends
Total
Total
Adjustments and additional information:
L Letsema, a debtor who owed R is declared insolvent. The enterprise received c in the rand from her insolvent estate and this was recorded. Write the rest off as irrecoverable.
The allowance for credit losses must be maintained at of good book debtors.
Insurance included an annual premium of R that ws paid on April
Part of the building is rented at R per month. Make provisions for the outstanding rent
According to a physical stocktaking, trade inventory on February was R
The water and electricity account for February has not yeat been paid R
Provide for depreciation on vehicles at per annum on the diminishing balance method August each year. Interest accrues at per annum
The mortgage loan is redeemable in equal annual instalments of R on August each year. Interest is per annum
A final divided of c per share was declared on February
The income tax for the accounting period amounts to R
During the year ended February an additional ordinary shares were issued at a price of R per share
On March there were ordinary shares in issue.
Required:
Prepare the statement of profit or loss and other comprehensive income for Enchanted Ltd for the year ended February
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