Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitals What They Are And How They Work

Authors: Don Griffin, Donald J Griffin

3rd Edition

076372758X, 9780763727581

More Books

Students also viewed these Accounting questions

Question

Find the median for the set of measurements 2, 9, 11, 5, 6.

Answered: 1 week ago