Make use of the information below and draw up the following: PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY
Question:
Make use of the information below and draw up the following:
PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY FOR ABC TRADERS 2019
Ordinary share capital (R1 ea)
280 000
Ordinary share premium
30 000
Retained Income
41 000
Loan from Umgeni Bank (15% p.a.)
27 000
Land and Buildings
360 000
Equipment
50 000
Accumulated depreciation on equipment
20 000
Inventory
82 000
Trade debtors
40 000
Allowance
1 500
Bank
16 300
Cash float
750
Petty cash
250
Trade creditors
12 800
SARS (Income tax)
7 000
Nominal accounts section
Sales
476 000
Sales returns
8 000
Cost of sales
208 000
Salaries and wages
90 000
Directors fees
17 000
Audit fees
4 000
Interest on loan
2 000
Credit losses
1 400
Rent income
9 900
Commission income
7 700
Packing material
2 600
Insurance
400
Sundry expenses
11 200
Dividends on ordinary shares (interim)
5 000
Adjustments to be effected on 28 February 2019
The following was found as per physical count.
1. 1. Trading Stock R80 300
1. 2. Packing Material R700
2. Depreciate equipment at 10% p.a. on the diminishing balance method.
3. Write of further credit losses of R2000.
4. Adjust allowance for credit losses to 5% of trade debtors.
5. Provide for the outstanding interest on loan.
6. Provide rates at 2% on value of land and buildings.
REQUIRED:
1.1. STATEMENT OF FINANCIAL POSITION for ABC Traders 28 Feb 2019 (15)
1.2 Notes to the statement of financial position, specifically the property, plant and equipment note
Statistics Unlocking The Power Of Data
ISBN: 9780470601877
1st Edition
Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock