Question 1 23 Marks

The following is the Trial Balance of as at 28 February 2022.

Capital 178 920

Sales 300 500

Purchases 203 000

Bank (Cr) 68 900

Cash 12 800

Creditors 66 660

Debtors 102 300

Stationery Expense 12 200

Rent Expense 3 660

Salary Expense 15 800

Advertising Expense 4 100

Motor Vehicle - Cost 184 000

Inventory 01 March 2021 18 400

Printing Expense 6 220

Repair Expense 8 300

Drawings 25 000

Computer Equipment - Cost 19 200

The following errors were discovered during the financial year ended 28 February 2022.

a) A debtor that was owing N$ 700 was erroneously written-off as bad debt.

b) Cash receipt of $200 was recorded as bank receipt.

c) A payment of N$ 2 000 received from a customer was recorded on supplier.

d) Credit sales of N$ 1 500 was recorded to supplier account.

e) Bank charge of $ 800 was completely omitted from the records.

f) Stationery purchased of $ 1 800 was debited to advertisement.

g) Printing that was purchased by EFT was completely ignored in the books, $780.

h) A customer that was owing $1 700 was declared bankrupt and the transaction was not recorded.

i) The owner withdraws a cheque for $500 and deposited in the business.

j) Depreciation for motor vehicle was not provided for. Depreciation is at 10% straight line and no residual value.

k) Depreciation for computer equipment was not provided for. Depreciation as at 15%, straight line with N$ 2 000 residual value.

REQUIRED:

Prepare a corrected Trial Balance as at 28 February 2022, after incorporating the above errors (23 Marks).

Question 2 29 Marks

Use Trial Balance from Question 1 and make the following adjustment and prepare post-adjusted trial balance as of 28 February 2022.

a) Monthly rent amounted to N$366.

b) Salary Expense included $800 for 31 March 2022.

c) Advertisement expense paid for 31 March 2022 was $300.

d) Repairs was in arrears with $700.

e) Stationery on hand as of 28 February 2022, was $4,000.

f) Printing expense was prepaid with N$2000.

g) Inventory 28 February 2022 was $12,500.

REQUIRED

Prepare a post-adjusted trial balance as of 28 February 2022 (29 Marks).

Question 3 23 Marks

Use post-adjusted trial balance as in Question 2.

a) Prepare the Statement of Comprehensive Income as of 28 February 2022 (17 Marks).

b) Prepare Statement of Financial Position as of 28 February 2022 (Show only Non-Current

Assets) (6 Marks).