QUESTION 1 (20 Marks) The trial balance and additional information given below were extracted from the accounting records of Dysan Limited on 29 February 2020, the end of the financial year. REQUIRED Prepare the Statement of Financial Position as at 29 February 2020. The notes to the financial statements are not required. Show workings in brackets. INFORMATION DYSAN LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020 Debit (R) Credit (R) 200 000 62 000 180 000 120 000 90 000 38 000 70 000 32 000 4 000 182 000 2 000 40 000 10 000 80 000 Balance sheet accounts section Ordinary share capital (100 000 shares) Retained earnings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Trading inventory Debtors control Provision for bad debts Bank Cash float Creditors control South African Revenue Services: Company tax Long-term loan: Aries Bank (16% p.a.) Nominal accounts section Sales Cost of sales Sales returns Salaries and wages Bad debts Consumable stores Rent expense Motor expenses Bad debts recovered Telephone Electricity and water Bank charges Insurance Interest on mortgage loan Commission income 485 000 240 000 5 000 84 000 5 2 000 28 000 15 000 2 000 7 000 11 000 3 000 4 000 6 000 5 000 1 006 000 1 006 000 Adjustments and additional information . 1. According to physical stocktaking done on 29 February 2020, trading inventory on hand amounted to R68 000 2. Consumable stores unused according to stocktaking amounted to R200 on 29 February 2020. 3. No entry has been made for a commission of 10% earned but not received on 500 items that were sold for R60 each. 4. Received a cheque for R600 from an insolvent debtor, J. Marsh, who was only able to pay 30% of her debt. The balance of her account must now be written off. No entries were made for these transactions. 5. The provision for bad debts must be decreased to R1 500. 6. The telephone account for February 2020 was due to be paid on 02 March 2020, R700. 7. The rental agreements signed with the lessor (landlord) are as follows: R30 000 for the period 01 January 2019 to 31 December 2019, and R36 000 for the period 01 January 2020 to 31 December 2020. Make the necessary adjustment 8. The loan from Aries Bank was obtained on 01 September 2019. Provide for the outstanding interest. (Interest is not capitalised.) Loan repayments (excluding interest) are expected to amount to R12 000 in the next financial year. 9. The insurance total includes an annual premium of R1 800 that was paid for the period 01 June 2019 to 31 May 2020. 10. The bank statement for February 2020 reflected bank charges of R180 that have not yet been recorded. 11. The electricity and water statement for February 2020 included an amount of R1 000 for a deposit required by the municipality. This was recorded in the water and electricity account. 12. Provide for depreciation as follows: 12.1 On equipment at 15% per annum on cost. 12.2 On vehicles at 25% per annum on the diminishing balance. 13. An account received from Heidi Motors to replace two tyres on the delivery vehicle of the business, R2 000, has not been recorded. 14. Company tax for the financial year amounted to R11 691. 15. The directors proposed a final dividend of 18 cents per share. 16. The profit after tax for the year ended 29 February 2020, after taking the above adjustments into account, was R27 279
