QUESTION 2 (25 Marks) The following information was extracted on 31 December 2019 from the records of Tetley Grove (Pty) Ltd, after the gross profit was determined for the year Pre-adjustment trial balance on 31 December 2019 Debit (NS) Inventory Credit NS) 85 000 Trade debtors Allowance for credit losses 105 000 Land and buildings 3 000 350 000 Petty cash 500 Equipment @ cost 100 000 Accumulated depreciation on equipment 50 000 Vehicles @ cost 120 000 Accumulated depreciation on vehicles 44 000 Fixed 30-day notice deposit 250 000 Bank 190 935 15% Long term loan (no repayments during current 200 000 year) Ordinary share capital (N$2,50 par value shares) 500 000 Preference share capital (N$1 par value shares) 100 000 Retained earnings 108 595 Trade creditors 21 275 Income tax payable to MOF 41 598 Gross Profit 550 000 Income taxation expense 41 598 Administrative expenditure 11 971 Other operating expenses 294 248 Distribution costs 10 672 Ordinary share dividends 5 000 49 000 Depreciation 4 544 Credit losses 1 618 468 1 618 468 Additional information: 1. The long term loan was entered into on 1 June 2019. The interest was paid on 31 December 2019, but no entry has been made for it yet. 2 On 31 December 2019 a vehicle, with a cost of N$ 25 000 (accumulated depreciation balance N$ 20 000), was sold for NS 10 000 cash to Win-Win Motors, No entry has been made for this transaction yet. QUESTION 2 (25 Marks) The following information was extracted on 31 December 2019 from the records of Tetley Grove (Pty) Ltd, after the gross profit was determined for the year Pre-adjustment trial balance on 31 December 2019 Debit (NS) Inventory Credit NS) 85 000 Trade debtors Allowance for credit losses 105 000 Land and buildings 3 000 350 000 Petty cash 500 Equipment @ cost 100 000 Accumulated depreciation on equipment 50 000 Vehicles @ cost 120 000 Accumulated depreciation on vehicles 44 000 Fixed 30-day notice deposit 250 000 Bank 190 935 15% Long term loan (no repayments during current 200 000 year) Ordinary share capital (N$2,50 par value shares) 500 000 Preference share capital (N$1 par value shares) 100 000 Retained earnings 108 595 Trade creditors 21 275 Income tax payable to MOF 41 598 Gross Profit 550 000 Income taxation expense 41 598 Administrative expenditure 11 971 Other operating expenses 294 248 Distribution costs 10 672 Ordinary share dividends 5 000 49 000 Depreciation 4 544 Credit losses 1 618 468 1 618 468 Additional information: 1. The long term loan was entered into on 1 June 2019. The interest was paid on 31 December 2019, but no entry has been made for it yet. 2 On 31 December 2019 a vehicle, with a cost of N$ 25 000 (accumulated depreciation balance N$ 20 000), was sold for NS 10 000 cash to Win-Win Motors, No entry has been made for this transaction yet
