Prepare the Statement of Financial Position as at 28 February 2022. The notes to the financial

statements are not required.

(20 Marks)

INFORMATION

The trial balance, adjustments and additional information given below were extracted from the accounting records of

Woodford Limited for the financial year ended 28 February 2022.

WOODFORD LIMITED

PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022

Debit (R) Credit (R)

Balance sheet accounts section

Capital (1 000 000)

Retained earnings (300 000)

Land and buildings 878 000

Vehicles at cost 572 000

Equipment at cost 480 000

Accumulated depreciation on vehicles (384 000)

Accumulated depreciation on equipment (168 000)

Fixed deposit: Fin Bank (9% p.a.) 144 000

Trading inventory 123 000

Debtors control 146 000

Provision for bad debts (8 000)

Bank 120 000

Cash float 7 000

South African Revenue Services: Company tax 30 000

Creditors control (134 000)

Mortgage loan: Fin Bank (12% p.a.) (240 000)

Nominal accounts section

Sales (1 635 000)

Cost of sales 432 000

Sales returns 9 000

Salaries and wages 427 000

Bad debts 13 000

Stationery 21 000

Rates and taxes 57 000

Motor expenses 96 000

Directors fees 120 000

Audit fees 20 000

Repairs to building 17 000

Telephone 32 000

Electricity and water 48 000

Bank charges 6 000

Insurance 62 000

Interest on mortgage loan 19 000

Interest on fixed deposit (10 000)

TOTAL DR 3 879 000 CR 3 879 000

Adjustments and additional information

1. The telephone account for February 2022 was due to be paid on 03 March 2022, R4 000.

2. A debtor, P. Martin, was declared insolvent. His account must now be written off, R3 000.

3. Stocktaking on 28 February 2022 revealed the following on hand:

3.1 Trading inventory R121 000

3.2 Stationery R1 000

4. The provision for bad debts must be increased by R700.

5. Directors fees unpaid amounted to R14 000.

6. The insurance total includes an amount of R6 000 that was paid for the next accounting period.

7. Provide for the outstanding interest on the mortgage loan, R9 800. Interest is not capitalised. Loan repayments

(excluding interest) totalling R30 000 are expected to be made in the next financial year.

8. Provide for outstanding interest on fixed deposit. Interest is not capitalised. The investment in fixed deposit was

made on 01 March 2021 and it matures on 28 February 2024.

9. Provide for depreciation as follows:

9.1 On equipment, R72 000.

9.2 On vehicles, R37 600.

10. Company tax for the financial year ended 28 February 2022 amounted to R39 860.

11. The profit after tax for the year ended 28 February 2022 amounted to R93 000, AFTER the above was taken into

account.

12. A final dividend of 80 cents per share was declared by the directors