Question
FINANCIAL STATEMENT AND DISPOSAL OF ASSET (25 Marks) 6.1 STATEMENT OF COMPREHENSIVE INCOME (20 marks) Use the following information extracted from the accounting records of
FINANCIAL STATEMENT AND DISPOSAL OF ASSET (25 Marks)
6.1
STATEMENT OF COMPREHENSIVE INCOME (20 marks) Use the following information extracted from the accounting records of IBHUBESI TRADING to
prepare the Statement of Comprehensive Income for the year ended 28 February 2017. IBHUBESI TRADING
PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2017
Statement of financial position accounts section
CREDIT
DEBIT |
48 000 |
485 000 |
210 000 |
150 000 |
45 000 |
88 660 |
45 130 |
37 525 |
2 200 |
136 000 |
5 000 |
130 500 |
4 200 |
6 840 |
14 490 |
30 000 |
5 410 |
10 160 |
15 180 |
1 860 |
19 470 |
9 375 |
1 500 000 |
Capital 614 000 Drawings Land and Buildings Vehicles
Equipment Accumulated Depreciation on Vehicles 120 000 Accumulated Depreciation on Equipment 84 000 Fixed Deposit : B. Bank [ 9% p.a. ] Trading Inventory Debtors Control Provision for bad debts 2 450 Bank Cash Float Creditors Control 42 200 Loan : K. Bank [ 15 % p.a. ] 75 000
Nominal accounts section
Sales 501 905 Cost of sales Sales return Salaries and wages
Bad debts Stationery Rates Vehicle expense Maintenance Telephone Electricity and water Bank charges Insurance
Interest on loan Interest on fixed deposit 3 375 Rent income 57 070
1 500 000
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9
Adjustments and Additional Information
6.2.
(5 marks)
m
A. B. C. D.
E.
F.
G. H.
I.
J.
Rent for March 2017 has been received in advance.
Write off a debtors outstanding account of R430 as irrecoverable.
Adjust the provision for bad debts to 5% of trade debtors.
Building maintenance costing R5 000 was erroneously debited to the Land and Buildings account. Correct this error.
Rates includes a payment of R12 000 made to the municipality for the period 01 July 2016 to 30 June 2017.
The proprietor used R615 from the cash float for personal use.
Interest on loan has been paid up to 31 December 2016. Provide for the outstanding amount. Update the interest on fixed deposit.
Stocktaking on 28 February 2017 revealed the following stock on hand:.
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Trading Inventory, R80 060.
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Stationery, R540.
Depreciation is provided as follows :
-
On equipment at 10% p.a.on cost. NB: New equipment costing R20 000
was purchased on 01 September 2016 and was properly recorded.
-
On vehicles at 20% p.a. on the diminishing balance method.
DISPOSAL OF FIXED ASSET
Use the information supplied below, by Cosmic Stores, to prepare the
Fixed Assets Realisation Account.
INFORMATION
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On 30 October 2016, the business sold an old equipment costing R60 000
for R3 600 cash.
-
The accumulated depreciation on this equipment was R50 400 on
01 March 2016.
-
Equipment is depreciated at 14%p.a. on cost.
10
General Ledger of Cosmic Stores + FIXED ASSETS REALISATON --
Sales |
Less : Cost of sales |
Gross Profit |
Add : Operating Income |
Gross Income |
Less : Operating Expenses |
Operating profit before interest |
Add : Interest Income |
Less : Interest Expense |
Net profit for the year |
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