Question
Prepare the Statement of Financial Position as at 29 February 2020. it is very important that you follow the exact format as the format given
Prepare the Statement of Financial Position as at 29 February 2020. it is very important that you follow the exact format as the format given in the blank table right at the bottom - THERE MUST BE NO DEBIT AND CREDIT SIDE ALL VALUES MUST FALL UNDER 1 SIDE *
MIDWAY TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020
Debit (R) | Credit (R) | |
Balance sheet accounts section | ||
Capital | 1 656 600 | |
Drawings | 134 200 | |
Land and buildings | 1 254 900 | |
Vehicles at cost | 945 000 | |
Equipment at cost | 650 000 | |
Accumulated depreciation on vehicles | 528 000 | |
Accumulated depreciation on equipment | 365 200 | |
Fixed deposit: Pep Bank (8% p.a.) | 198 000 | |
Trading inventory | 155 000 | |
Debtors control | 176 600 | |
Provision for bad debts | 9 900 | |
Bank | 137 800 | |
Creditors control | 184 800 | |
Mortgage loan: Pep Bank (20% p.a.) | 330 000 | |
Nominal accounts section | ||
Sales | 2 070 000 | |
Cost of sales | 794 000 | |
Sales returns | 13 000 | |
Salaries and wages | 587 000 | |
Bad debts | 18 000 | |
Stationery | 30 000 | |
Rates and taxes | 58 000 | |
Motor expenses | 32 000 | |
Advertising | 23 000 | |
Telephone | 44 000 | |
Electricity and water | 66 000 | |
Bank charges | 8 000 | |
Insurance | 10 000 | |
Interest on fixed deposit | 14 000 | |
Rent income | 176 000 | |
5 334 500 | 5 334 500 |
ADJUSTMENTS AND ADDITIONAL INFORMATION
- Physical stocktaking on 29 February 2020 showed the following inventories:
- Trading inventory R150 000;
- Stationery R3 000.
- Write off the account of debtor, R. Smith, R2 000.
- The provision for bad debts must be increased by R1 000.
- Rent income amounts to R16 000 per month. Make the necessary adjustment.
- The water and electricity account for February 2020 was due to be paid on 02 March 2020, R11 000.
- Rates and taxes include an amount of R15 000 that was paid for the period 01 January 2020 to 31 March 2020.
- An amount of R800 appeared in the February 2020 bank statement for bank charges. This transaction was not recorded.
- The investment in fixed deposit was made on 01 March 2019 and matures on 31 August 2020. Make the necessary adjustment for the interest.
- The loan from Pep Bank was obtained on 01 February 2020. Provide for the outstanding interest. Interest is not capitalised. Note: Loan repayments during the next financial year are expected to total R50 000.
- Provide for depreciation as follows:
- On equipment at 10% p.a. on cost.
- On vehicles at 20% p.a. using the diminishing balance method.
- The net profit, according to the Statement of Comprehensive Income for the year ended 29 February 2020, amounted to R429 140 after the above adjustments and additional information were taken into account.
Noncurrent Assets total Assets Non Current Assets Property plant and equipment Current Assets Inventories Accounts recieveable cash Value Current Assets total value value value Assets Total Equities and Liabilities Equity Non current liabilities loan Current Liabilities Accounts payable Equity total Non current liability total value Current Liabilities total value equities and liabilities total
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