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Please answer all the questions provided on all pictures from question 1.1 to 1.5 choosing the correct answer. Thank you. (20 Marks) QUESTIONS The trial
Please answer all the questions provided on all pictures from question 1.1 to 1.5 choosing the correct answer. Thank you.
(20 Marks) QUESTIONS The trial balance, adjustments and additional information were extracted from the accounting records of Allied Traders on 28 February 2018, the end of the financial year REQUIRED Prepare the Statement of Comprehensive Income for the year ended 28 February 2018. INFORMATION ALLIED TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2018 Debit (R) Credit (R) Balance Sheet Accounts Section Capital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Trading inventor Debtors control Provision for bad debts Bank Cash float Petty cash Creditors control Loan: Solo Bank Nominal Accounts Section Sales Cost of sales Sales returns Salaries and wages Bank charges Rent income Packing materials Advertising Rates Bad debts Discount allowed Discount received Stationer Interest on loan Water and electricit Insurance Telephone 870 000 233 000 08 000 270 000 208 000 93 000 77 000 43 000 100 000 5 000 4000 2 000 1000 60 000 96 000 1 270 000 600 000 20 000 18 000 5 000 66 000 36 000 19 000 6 000 3 000 1000 3 000 19 000 10 000 8 000 17 000 9 000 540 000 2 540 000 ADJUSTMENTS AND ADDITIONAL INFORMATION No entry was made for stationery that was donated on 26 February 2018 to an old age home, R1 000 1. 2. Inventories on 28 February 2018 according to a physical stocktaking were as follows: 2.1 Trading inventory R140 000 2.2 Stationery 3. The telephone account for February 2018 was due to be paid on 03 March 2018, R900. 4. Rent has been received up to 31 Jauary 2018 5. A debtor, P. Kriek, who owed R2 000 was declared insolvent. His account must now be R2 000 written off 6. The provision for bad debts must be increased by R1 000. 7. The insurance total includes an amount of R3 000 that was paid for the period 01 September 2017 to 31 August 2018. 8. Interest on loan outstanding on 28 February 2018 amounted to R2 000. 9. Depreciation must be brought into account each year as follows: 9.1 On vehicles at 20% per annum using the diminishing balance method. 9.2 On equipment at 10% per annum on cost. QUESTION 2 The following information was extracted from the accounting records of Dunkirk Traders REQUIRED Prepare the cash journals for March 2018. Commence with the provisional totals. Cast the journals. (Note: The Bank account is NOT required.) Use the following format: 20 2.1 13 Cash Recei Details s Journal Cash Pa Details s Journal Prepare the Bank Reconciliation Statement as at 31 March 2018. (Make provision for two amount columns viz.: Debit and Credit.) INFORMATION A comparison of the bank statement for March 2018, received from LG Bank, with the March cash journals and the Bank Reconciliation Statement as at 28 February 2018 revealed the following which must be taken into account: On 28 February 2018 the Bank account in the General Ledger reflected an overdraft of R39 600 whilst the balance in the Bank Statement was R33 600 debit. The difference in the balances was due to the following: Cheque numbers 143 and 175 for R1 200 and R8 000 respectively were not presented for payment at the bank during February 2018. A deposit for R3 200 on 28 February 2018 appeared in the Cash Receipts Journal only The deposit made by Dunkirk Traders on 28 February 2018, R3 200, was credited in the bank statement for March 2018 Cheque no.143, issued to PQ Suppliers in settlement of account, is now stale. A cancellation entry is required in the books of Dunkirk Traders. A replacement cheque will be issued on 02 April 2018. Cheque no. 175 did not appear in the Bank statement for March 2018. The bank columns of the Cash Receipts Journal and Cash Payments Journal totalled R368 400 and R360 000 respectively on 31 March 2018, before the bank statement was received. The bank statement reflected an unfavourable balance of R23 840 on 31 March 2018. LG Bank made an electronic transfer for interest on fixed deposit into the account of Dunkirk Traders. This was in respect of interest at 6% pa. for 6 months on a fixed deposit of R120 000 Cheque no. 178 issued to Premier Wholesalers for trading inventory was incorrectly recorded in the Cash Payments Journal as R7 200. The bank statement reflected the correct amount of R4 320 A debit order in favour of Miway Insurers for the insurance premium of the personal vehicle of the proprietor has not been recorded in the relevant cash journal, R1 200 2.2 1. 1.1 1.2 2. 3. 4. 5. 6. 7. (20 Marks) QUESTIONS The trial balance, adjustments and additional information were extracted from the accounting records of Allied Traders on 28 February 2018, the end of the financial year REQUIRED Prepare the Statement of Comprehensive Income for the year ended 28 February 2018. INFORMATION ALLIED TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2018 Debit (R) Credit (R) Balance Sheet Accounts Section Capital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Trading inventor Debtors control Provision for bad debts Bank Cash float Petty cash Creditors control Loan: Solo Bank Nominal Accounts Section Sales Cost of sales Sales returns Salaries and wages Bank charges Rent income Packing materials Advertising Rates Bad debts Discount allowed Discount received Stationer Interest on loan Water and electricit Insurance Telephone 870 000 233 000 08 000 270 000 208 000 93 000 77 000 43 000 100 000 5 000 4000 2 000 1000 60 000 96 000 1 270 000 600 000 20 000 18 000 5 000 66 000 36 000 19 000 6 000 3 000 1000 3 000 19 000 10 000 8 000 17 000 9 000 540 000 2 540 000 ADJUSTMENTS AND ADDITIONAL INFORMATION No entry was made for stationery that was donated on 26 February 2018 to an old age home, R1 000 1. 2. Inventories on 28 February 2018 according to a physical stocktaking were as follows: 2.1 Trading inventory R140 000 2.2 Stationery 3. The telephone account for February 2018 was due to be paid on 03 March 2018, R900. 4. Rent has been received up to 31 Jauary 2018 5. A debtor, P. Kriek, who owed R2 000 was declared insolvent. His account must now be R2 000 written off 6. The provision for bad debts must be increased by R1 000. 7. The insurance total includes an amount of R3 000 that was paid for the period 01 September 2017 to 31 August 2018. 8. Interest on loan outstanding on 28 February 2018 amounted to R2 000. 9. Depreciation must be brought into account each year as follows: 9.1 On vehicles at 20% per annum using the diminishing balance method. 9.2 On equipment at 10% per annum on cost. QUESTION 2 The following information was extracted from the accounting records of Dunkirk Traders REQUIRED Prepare the cash journals for March 2018. Commence with the provisional totals. Cast the journals. (Note: The Bank account is NOT required.) Use the following format: 20 2.1 13 Cash Recei Details s Journal Cash Pa Details s Journal Prepare the Bank Reconciliation Statement as at 31 March 2018. (Make provision for two amount columns viz.: Debit and Credit.) INFORMATION A comparison of the bank statement for March 2018, received from LG Bank, with the March cash journals and the Bank Reconciliation Statement as at 28 February 2018 revealed the following which must be taken into account: On 28 February 2018 the Bank account in the General Ledger reflected an overdraft of R39 600 whilst the balance in the Bank Statement was R33 600 debit. The difference in the balances was due to the following: Cheque numbers 143 and 175 for R1 200 and R8 000 respectively were not presented for payment at the bank during February 2018. A deposit for R3 200 on 28 February 2018 appeared in the Cash Receipts Journal only The deposit made by Dunkirk Traders on 28 February 2018, R3 200, was credited in the bank statement for March 2018 Cheque no.143, issued to PQ Suppliers in settlement of account, is now stale. A cancellation entry is required in the books of Dunkirk Traders. A replacement cheque will be issued on 02 April 2018. Cheque no. 175 did not appear in the Bank statement for March 2018. The bank columns of the Cash Receipts Journal and Cash Payments Journal totalled R368 400 and R360 000 respectively on 31 March 2018, before the bank statement was received. The bank statement reflected an unfavourable balance of R23 840 on 31 March 2018. LG Bank made an electronic transfer for interest on fixed deposit into the account of Dunkirk Traders. This was in respect of interest at 6% pa. for 6 months on a fixed deposit of R120 000 Cheque no. 178 issued to Premier Wholesalers for trading inventory was incorrectly recorded in the Cash Payments Journal as R7 200. The bank statement reflected the correct amount of R4 320 A debit order in favour of Miway Insurers for the insurance premium of the personal vehicle of the proprietor has not been recorded in the relevant cash journal, R1 200 2.2 1. 1.1 1.2 2. 3. 4. 5. 6. 7Step by Step Solution
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