grade 11 finance

Question 2 P principles. y the Financial (6) Statement of Financial Position (Balance Sheet) (40 Marks, 36 minutes) You are provided with information extracted from the accounting records of Pillay's Plumbers. This partnership business is owned by two brothers Sashin and Seren Pillay. Required: 2.1. Use the information provided below to complete the Balance Sheet on 28 February 2019. Show calculations in brackets so that part marks can be awarded 2.2. calculate the Percentage Return on Average Partners Equity (to | decimal place). INFORMATION: (5) A. Extract from the Pre-Adjustment Trial balance on 28 February 2019 Equipment at carrying value 2019 Vehicles at carrying value 125 140 Fixed Deposit (5% p.a) 600 000 Bank 50 000 Petty Cash 35 000 Debtors Control 2 000 Provision for Bad Debis 26 000 Inventories 950 Creditors Control 7 Capital: Sashin 31 200 Capital: Seren 240 000 Current Account: Sashin 220 000 Current Account: Seren 21 500 10 500 Mortgage Loan (10.5%) B. Fixed Assets Equipment still needs to be depreciated by R10 000 for this financial year. Depreciation on vehicles is to be provided at 20% per annum on the diminishing balance method. No vehicles were bought or sold this year. C. Financial Assets The fixed deposit has been in existence since 1 July 2017. No entry has been made for the . interest earned on the fixed deposit for the financial year ended 28 February 2019. Interest is capitalised. The partners plan to withdraw R15 000 out of the fixed deposit when it matures on 30 June 2019. The rest of the money will be re-invested. D. Provision for Bad Debts . The current provision for bad debts needs to be adjusted to 3% of book debts. E. Financial Indicators: 2019 2018 0.4 : 1 0.3 : 1 17.3% Debts-Equity Ratio Return on Average Partners Equity 2.8 : 1 2.2 : 1 Current Ratio F. Partners Equity on 28 February 2018 amounted to R485 300. G. The Net profit for the year ended February 2019, after the adjustments above were taken into consideration amounted to R90 870. (40 Marks; 36 minutes)