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Everest is a sole trader that has a 3 1 December 2 0 1 6 financial year end. The business sells a range of camping
Everest is a sole trader that has a December financial year end. The business sells a range of camping gear to a large customer base. Per inspection of the Statement of Financial Position as at December the owner's equity balance amounted to R The following information is relevant for the preparation of the financial statements for the year ended December The profit for the period for the year ended December amounted to R The following is an extract from the trial balance that was prepared by the accountant as at December : tableAccount Name,tableDRRandtableCRRandBankVehiclesInventoryLong term loan,,EquipmentAccounts receivable, The above profit and trial balance figures were however calculated before taking into account the following adjustments: a Mr Everest, the owner took camping gear with a cost of R as a gift for his nephew. The selling price of this gear amounted to R b A new point of sales system was installed on June for an amount of R cash. The system is expected to operate over a period of years after which it will need to be replaced. c Included in the profit figure is an amount of R for water and electricity for months January to November The invoice for December was not captured as the payment in relation to the invoice had not been made by December The amount per the December invoice amounted to R Payment of the R was made in early January d The profit for the period was calculated taking into account cash drawings made by the owner during the year of R e Included in the profit figure is an amount of R for advertising in relation to the maintenance of the business's website. The amount of R was paid on July and it was agreed with the supplier that the period of service would extend months from the date of payment. f A donation of camping gear was given to a school in sponsorship of their camping expedition. The cost of the goods amounted to R The goods had a selling price of R No record has been made regarding this transaction.
Everest is a sole trader that has a December financial year end. The business
sells a range of camping gear to a large customer base. Per inspection of the Statement of Financial Position as at December the owner's equity balance amounted to R
The following information is relevant for the preparation of the financial statements for the year ended December
The profit for the period for the year ended December amounted to R The following is an extract from the trial balance that was prepared by the accountant as at December :
tableAccount Name,tableDRRandtableCRRandBankVehiclesInventoryLong term loan,,EquipmentAccounts receivable,
The above profit and trial balance figures were however calculated before taking into account the following adjustments:
a Mr Everest, the owner took camping gear with a cost of R as a gift for his nephew. The selling price of this gear amounted to R
b A new point of sales system was installed on June for an amount of R cash. The system is expected to operate over a period of years after which it will need to be replaced.
c Included in the profit figure is an amount of R for water and electricity for months January to November The invoice for December was not captured as the payment in relation to the invoice had not been made by December The amount per the December invoice amounted to R Payment of the R was made in early January
d The profit for the period was calculated taking into account cash drawings made by the owner during the year of R
e Included in the profit figure is an amount of R for advertising in relation to the maintenance of the business's website. The amount of R was paid on July and it was agreed with the supplier that the period of service would extend months from the date of payment.
f A donation of camping gear was given to a school in sponsorship of their camping expedition. The cost of the goods amounted to R The goods had a selling price of R No record has been made regarding this transaction.
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