Question 2

QUESTION TWO [25] The following information relates to SaveSA, a service enterprise: Pre adjusted trial balance of SaveSA at 28 February 2018. Debit Credit R R Land and buildings at cost 130 000 Furniture and fittings at cos 50 000 Accumulated depreciation - 28/02/2017: Furniture and Fittings 5 000 15% Mortgage bond secured by land & buildings 50 000 Capital 95 500 Trade debtors 23 350 Trade creditors 13 400 Bank overdraft 960 Drawings 7 300 Petty cash 550 Stationery 2 450 Salaries 35 100 Insurance 9 500 Electricity 11 000 Telephone 1 860 Fees earned 89 500 Rent income 17 500 Bank charges 750 271 860 271 860 Additional Information: 1. The Account of S Sorry, a debtor owing R200 must be written off. 2. A provision for doubtful debts at 5% on outstanding trade debtors balances still to be created. 3. Rent income amounts to R950 per month and the rental has been charged for the year. 4. Provide for interest for the year still outstanding on mortgage bond 5. Provide for depreciation on furniture and fittings at 10% per annum straight line method. 6. Insurance is paid for the period 1 December 2017 to 30 April 2018. 7. Electricity account relating to usage for February 2018 was received on 09 March 2018. An amount of R1 200 was billed. REGENT BUSINESS SCHOOL (RBS) ACADEMIC AND ASSESSMENT CALENDAR - January 2019 22 BACHELOR OF COMMERCE IN HUMAN RESOURCE MANAGEMENT YEAR 1 - DISTANCE Required: 2.1. Prepare the statement of comprehensive income for the year ended 28 February 2018. (20) 2.2. Prepare the Statement of Changes in Equity for the year ended 28 February 2018