question 1 part 1

QUESTION ONE The information provided below was extracted from the accounting records of Sahara Traders on 28 February 2021, the end of the financial year. Use the trial balance, additional information and adjustments to prepare the Statement of Financial Position of Sahara Traders as at 28 February 2021. Note: The Statement of Comprehensive Income and notes to the financial statement are not required. INFORMATION SAHARA TRADERS ADDITIONAL INFORMATION AND ADJUSTMENTS 1. The net profit for the year ended 28 February 2021 according to the Statement of Comprehensive Income, after taking the following adjustments into account is R102 050. 2. According to physical stocktaking on 28 February 2021, the following inventories were on hand: 2.1 Trading inventory, R103 000 . 2.2 Consumable stores, R200. 3. Rent has been paid up to 31 March 2021. Note: The rent was increased by R350 per month with effect from 01 February 2021. 4. A debtor who owed R1 000 was declared insolvent. Forty percent (40%) of the amount owing was received from his insolvent estate on 27 February 2021 and recorded. The balance of his account must now be written off. 5. The allowance for credit losses must be decreased by R300. 6. Provide for outstanding interest on the loan from Maxi Bank. The loan was obtained on 01 March 2020. Loan repayments totalling R20000 are expected to be made in the next financial year. 7. The telephone account for February 2021 has not yet been paid, R800. 8. According to the bank statement, service fees of R200 were levied by the bank. This has not yet been recorded. 8. Received a cheque for R500 from H. Hilton whose account was written off previously. No entry has yet been made for this. 10. A payment of R700 for insurance was erroneously posted to the electricity and water account. 11. A debtor whose account of R4 000 was overdue for 1 month must be charged interest at 15% per annum. 12. Provide for depreciation as follows: 12.1 On equipment at 10% per annum on cost. 12.2 On vehicles, R19 650