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Part 2 ( 3 5 marks; 5 3 minutes ) Everest is a sole trader that has a 3 1 December 2 0 1 6

Part 2(35 marks; 53 minutes)Everest is a sole trader that has a 31 December 2016 financial year end. Thebusinesssells a range of camping gear to a large customer base. Per inspection of theamounted to Bs3700to DeCember 2O15, the oWner's equity balanceThe profit for the period for the year ended 31 December 2016 amounted toaccountant as at 31 December 2016:BankVehiclesIoventoryAccount NameEquipmenLong term loanNr1.g orhavon is relevant tor the preparation of the financial statements2.Accounts receivablea)taking into account the following adjustments:nd trialf)fromnYou are reguired to:DRthis transaction.RandriodQuestiontrial bal348O01970001056005678001234O0Mr Everest. the owner oOk campig,gear with a cost oT R S00as aa giftb) A new point of sales system was installed on 30 June 2016 for an amountof R1s 600 cash. The system is expected to operate over a period of 8c) included in the profit figure is an amount of R6O o00 for water andthat was prepared by theelectricity for months Jauary 2016 to November 2016. The invoice forDeemper oT was notCapturea asnG payment In relaton tothe invoice2016 invoice amounted to R4500. Payment of the R4500 was made inearly January 2017.CRRandwere however calculated befored)madeProrithe owner durina the erngnto aGCOunt cash drawingse) Included in the profit figure is an amount of R12500 for advertising inrelation to the maintenance oT the businesss website. The amount of R12period of service wOuld extend 8 months from the date of payment.56000g) Everest operates an annual 10 Km run from which they collect a fee fromthe various participants. The run is scheduled for 01 February 2017. Anamount of R45000 has been collected from participants who would like tobe include in the run. No record of the R45000 has been made in therecords.the Statement of Changes in Equity for the yearended 31 December 2016.Prepare the Statement of Financial Position as at 31December 2016.Marks19 marks16 marksA donation of camping gear was given to a school in sponsorship of theirgoods had a seling price of R22 o00. No record has been made regarding
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