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
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 ae) R280 000
Ordinary share premium R30 000
Retained income R41 000
Loan from umgeni bank (15%p.a)
Land and buildings R360 000
Equipment R50 000
Accumulated depreciation on equipment R20 000
Inventory R82 000
Trade debtors R40 000
Allowance R1 500
Bank R16 300
Cash float R750
Petty cash R250
Trade creditors R12 800
SARS (income tax) R7000
NOMINAL ACCOUNT SECTION
Sales R476 000
Sales returns R8000
Cost of sales R208 000
Salaries and wages R90 000
Directors fees R17 000
Audit fees R4000
Interest on loan R2000
Credit losses R1 400
Rent income R9 900
Commission income R7 700
Packing material R2 600
Insurance R400
Sundry expenses R11 200
Dividends on ordinary shares (interim) R5000
Adjustments to be affected on 28 February 2019
The following was found as per physical count.
1.1 Trading stock 80 300
1.2 packing material 700
2.depreciation equipment at 10%p.a on the diminishing balance method.
3.write of further credit losses of R3000
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
1.2 notes to the statement of financial position, specifically the property, plant and equipment note
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