please answer question 3.1.3 B. (iv)

Accounting QUESTION 3: COMPANY FINANCIAL STATEN NSC DRE/November 2015 ANY FINANCIAL STATEMENTS AND AUDIT REPORI 3.1 PRIDONA LIMITED The following information te (60 marks; 35 minutes) hormation relates to Pridona limited the financial year ended 30 June 2015. The business uses the perpetual (con system. SS uses the perpetual (continuous) inventory REQUIRED: 3.1.1 Refer to Information B. Calculate the correctnet profit after tax for the year ended 30 June 2015. Indicate a + for increase and a-for decrease. 3.1.2 Prepare the Retained Income Note on 30 June 2015 3.1.3 Prepare the Balance Sheet on 30 June 2015. Where notes are NOT required, workings must be shown. INFORMATION: A. List of balances/totals on 30 June 2015 BALANCE SHEET ACCOUNTS SECTION Ordinary share capital Retained income (1 July 2014) Mortgage loan: Custom Bank Fixed assets Trading stock Debtors' control rovision for bad debts (1 July 2014) Cash and cash equivalents (balancing figure) SARS: Income tax (provisional tax payments) Income receivable accrued) Creditors' control R5 600 000 2 700 000 262 200 8 950 000 203 200 316 000 11400 ? 725 000 5 200 261 000 B. Net profit before tax of R2 493 600 was determined BEFORE taking into account the following information: (0) Trading stock on 30 June 2015 was valued at R191 900. (ii) Provision for bad debts must be adjusted to R9 000 (iii) Rent for July 2015, R2 800, had been received in advance. (iv) An annual insurance premium of R6 000 was paid for the period 1 April 2015 to 31 March 2016. (v) The auditor discovered that the profit on disposal of a vehicle, R6 800, was incorrectly shown as a loss. (vi) Income tax amounts to R750 000 for the year. Please turn over Copyright reserved