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QUESTION 1 REQUIRED ( 2 0 Marks ) Use the information given below to complete the following financial statements: 1 . 1 Statement of Comprehensive
QUESTION REQUIRED Marks Use the information given below to complete the following financial statements: Statement of Comprehensive Income for the year ended February marks Statement of Financial Position as at February Show the workings in brackets next to the relevant details. marks Note: Some of the amounts have already been entered in the answer book. INFORMATION The following trial balance, adjustments and additional information were extracted from the records of Aerostat Traders for the financial year ended February : tableAEROSTAT TRADERSPREADJUSTMENT TRIAL BALANCE AS AT FEBRUARY Debit RCredit RBalance sheet accounts sectionCapitalLand and buildings,Vehicles at costEquipment at costAccumulated depreciation on vehicles,,Accumulated depreciation on equipment,,Debtors controlAccounts receivable,Provision for bad debtsAllowance for credit losses,,BankCreditors controlAccounts payable,,Mortgage loan: Med Bank paNominal accounts sectionSalesSales returns,Opening stock,PurchasesSalaries and wages,Bad debts,StationeryRent expense,Motor expenses,Bad debts recovered,,TelephoneElectricity and water,Bank charges,InsuranceInterest on mortgage loan,Commission income,, ADDITIONAL INFORMATION AND ADJUSTMENTS Stocktaking on February revealed trading inventory of on hand: The rent expense amounted to R per month for the period March to August and R per month for the period September to March Make the necessary adjustment. A debtor who owed R was declared insolvent. His account must now be written off. The provision for bad debts must be decreased to RShow a separate account for the change in the provision for bad debts in the statement of comprehensive income. Provide for outstanding interest on the loan for the last month of the financial year. Interest is not capitalised. The telephone account for February was due to be paid on March R According to the bank statement, bank charges of R were levied by the bank. This has not been recorded. Received R from H Keron whose account was written off as a bad debt previously. No entry was made for this. A debtor whose account was overdue for one month must be charged R interest. Provide for depreciation as follows: On vehicles at per year using the reducing balance method. Note: Vehicles that cost R were purchased on December The purchase has been recorded. On equipment at per year using the fixed instalment method.
QUESTION
REQUIRED
Marks
Use the information given below to complete the following financial statements:
Statement of Comprehensive Income for the year ended February
marks
Statement of Financial Position as at February Show the workings in brackets next to the relevant details.
marks
Note: Some of the amounts have already been entered in the answer book.
INFORMATION
The following trial balance, adjustments and additional information were extracted from the records of Aerostat Traders for the financial year ended February :
tableAEROSTAT TRADERSPREADJUSTMENT TRIAL BALANCE AS AT FEBRUARY Debit RCredit RBalance sheet accounts sectionCapitalLand and buildings,Vehicles at costEquipment at costAccumulated depreciation on vehicles,,Accumulated depreciation on equipment,,Debtors controlAccounts receivable,Provision for bad debtsAllowance for credit losses,,BankCreditors controlAccounts payable,,Mortgage loan: Med Bank paNominal accounts sectionSalesSales returns,Opening stock,PurchasesSalaries and wages,Bad debts,StationeryRent expense,Motor expenses,Bad debts recovered,,TelephoneElectricity and water,Bank charges,InsuranceInterest on mortgage loan,Commission income,,
ADDITIONAL INFORMATION AND ADJUSTMENTS
Stocktaking on February revealed trading inventory of on hand:
The rent expense amounted to R per month for the period March to August and R per month for the period September to March Make the necessary adjustment.
A debtor who owed R was declared insolvent. His account must now be written off.
The provision for bad debts must be decreased to RShow a separate account for the change in the provision for bad debts in the statement of comprehensive income.
Provide for outstanding interest on the loan for the last month of the financial year. Interest is not capitalised.
The telephone account for February was due to be paid on March R
According to the bank statement, bank charges of R were levied by the bank. This has not been recorded.
Received R from H Keron whose account was written off as a bad debt previously. No entry was made for this.
A debtor whose account was overdue for one month must be charged R interest.
Provide for depreciation as follows:
On vehicles at per year using the reducing balance method. Note: Vehicles that cost R were purchased on December The purchase has been recorded.
On equipment at per year using the fixed instalment method.
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