Included below is a list of balances extracted from the general ledger of Priced Right Dealers on $31$ July $20$x$4$ with some additional information. The trial balance is also available in Excel, File name:

OCIA KM$6$ Questions $11$ & $12$

Priced Right Dealers

Trial balance as at $31$ July $20$x$4$

Dr

Cr

R

R

Land and buildings

$1300500$

Furniture and equipment

$145000$

Vehicles

$260000$

Capital

$3039990$

Debtors

$300000$

Provision for credit losses

$10200$

Creditors

$385000$

Bank overdraft

$290675$

$9\%$ Long term loan

$500000$

Inventories $(1/8/20$x$3)$

$2525000$

Consumable goods on hand

$200000$

Accumulated depreciation: Vehicles

$61325$

Accumulated depreciation: Furniture and Equipment

$73900$

Purchases

$7890000$

Sales

$9995080$

Telephone

$29000$

Water and electricity

$190420$

Insurance prepaid

$75000$

Interest on loan

$41250$

Salaries and wages

$1400000$

$14356170$

$14356170$

$$ Leadership Academy, $2023$

Version: $2023/02$ Page $6$ of $9$

Additional information

$1.$

No physical stock take was done on $31$ July $20$x$4.$

$2.$

Selling prices are determined by adding $33\mathrm{.}5\%$ to cost price. There were no stock losses for the year to $31$ July $20$x$4.$

$3.$

Consumable goods to the value of R$180000$ were consumed during the year.

$4.$

Wages and salaries due on $31$ July $20$x$4$ amounted to R$1000.$ These were only paid in August $20$x$4.$

$5.$

Interest on the long$-$term loan is charged monthly at $9\%$ per annum. The loan was obtained on $28$ February $20$x$3$ and is repayable after five years. The interest for July $20$x$4$ must still be accounted for.

$6.$

Bad debts amounting to R$10000$ must still be written off.

$7.$

Provision for credit losses must be adjusted to $5\%$ of outstanding debtors.

$8.$

The insurance premium paid was in respect of a fire insurance policy covering $18$ months from $1$ February $20$x$4.$

$9.$

Depreciation must be provided for:

$$

Motor vehicles at $20\%$ per annum on cost price.

$$

Furniture and equipment at $10\%$ per annum on carrying amount.

$10.$

A motor vehicle was sold on $31$ July $20$x$4.$ The accounting entries for this must still be processed. This was a cash transaction. Detail of the vehicle is as follows:

$$

Date purchased: $28$ February $20$x$2$

$$

Cost: R $32547$

$$

Selling price: R $12000$

Required

a$.$

Prepare a statement of comprehensive income for the year ended $31$ July $20$x$4.(22$ marks$)$

b$.$

Prepare a statement of financial position as at $31$ July $20$x$4.$