QUESTION 5 STATEMENT OF FINANCIAL POSITION The trial balance, adjustments and additional information provided below were extracted from the accounting records of Klicks Traders on 29 February 2016, the end of the financial year. REQUIRED Use the trial balance and additional information to prepare the Statement of Financial Position of Klicks Traders as at 29 February 2016. The Statement of Comprehensive Income and notes to the financial statements are not required. Credit (R) 240 950 138 000 54 000 6 600 61 500 105 000 Klicks Traders PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2016 Debit (R) Balance sheet accounts section Capital Drawings 114 000 Vehicles at cost Equipment at cost 165 000 Accumulated depreciation on vehicles Accumulated depreciation on equipment Trading inventory 105 000 Debtors control 48 000 Provision for bad debts Bank 35 850 Creditors control Mortgage loan: Midi Bank (16% p.a.) Nominal accounts section Sales Cost of sales 360 000 Sales returns 4500 Salaries and wages 129 000 Bad debts 1500 Consumable stores 2 300 Rent expense 34 500 Motor expenses 26 700 Bad debts recovered Telephone 9 300 Electricity and water 18 600 Bank charges 3 700 Insurance 8 100 Interest on mortgage loan 7 800 Commission income 1 358 850 742 500 1 358 850 Adjustments and additional information The net profit, according to the Statement of Comprehensive Income for the year ended 29 February 2016, was R102 050 after taking the following adjustments into account: 1. According to physical stocktaking on 29 February 2016, the following inventories were on hand: 1.1 Trading inventory, R103 000. 1.2 Consumable stores, R200. 2. Rent has been paid up to 31 March 2016. Note: The rent was increased by R350 per month with effect from 01 February 2016. 3. A debtor who owed R1 000 was declared insolvent. 40% of the amount owing was received from his insolvent estate on 27 February 2016 and recorded. The balance of his account must now be written off. 4. The provision for bad debts must be decreased by R300. 5. Provide for the outstanding interest on the loan from Midi Bank. The loan was obtained on 01 March 2015. R20 000 of the loan balance will be repaid during the next financial year. 6. The telephone account for February 2016 has not yet been paid, R800. 7. According to the bank statement, bank charges 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. 9. A payment of R700 for insurance was erroneously posted to the electricity and water account. Correct the error. 10. A debtor whose account of R4 000 is overdue must be charged interest at 15% per annum for 1 month. 11. Provide for depreciation as follows: 11.1 On equipment at 10% per annum on cost. 11.2 On vehicles at 20% per annum on the diminishing balance. Note: A vehicle that cost R65 000 was purchased on 01 December 2015. The purchase has been recorded