Question 7 of 20 CK TRADERS AN EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 OCTOBER 20,9 R Capital. 350 000 Drawings. 2 500 Trade receivables control 180 560 Trade payable control. 129 875 Land and building 73 722 1 075 308 Machinery (at cost) Accumulated depreciation: Machinery (1 November 20.8) ? Vehicle (at cost). 125 900 Accumulated depreciation: Vehicle (1 November 20.8). 12 590 Inventory Trading (1 November 20.8). 4 800 Bank (Favourable) 15 909 Petty cash 254 Cash float 2542 Loan from ATM Bank. 258 564 Fixed deposit TB Bank 120 782 Allowances for credit losses 1530 Rent income 20 928 Interest on foced deposit 7247 Advertising 23 580 258 564 Loan from ATM Bank. 120 782 Fixed deposit: TB Bank. 1 530 Allowances for credit losses 20 928 Rent income 7 247 Interest on fixed deposit.. 23 580 Advertising 8 910 Packaging material Stationery 3540 Credit losses 650 Salaries and wages 98 000 Interest on loan from ATM Bank 20 257 Water and electricity 9 456 Telephone expenses 1 984 Additional information with regards to adjustments that you still need to take into account. (a) CK Traders sublets part of its building to B Silver. B Silver paid R20 028 on the 1 November 20.8 for 15 months. The rental agreement stipulated that CK Traders will increase the rental amount to R1 688 from 1 August 20.9. (b) CK Traders deposited R120 782 into a fixed deposit account with TB Bank on 1 February 20.9, at an interest rate of 12% per annum. The interest is receivable twice per annum in June and December (c) On 1 November 20.8. CK Traders entered into an advertising contract with Kgomotso advertising agency for a period of 2 years for a total amount of R23 580. CK Traders paid R23 580 to Kgomotso advertising agency on 1 November 20.8 to com the full contracted period (d) A physical inventory count revealed that the following was on hand on 31 October 20.8. Inventory R7 775 Packaging material R1 990 Stationery R280 (e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at 11,5% per annum. The loan repayment schedule indicate that the capital repayment of the loan would be made in four equal instalments as follows: Instalments Amount Repayment date First instalment R64 641 30 April 2010 Second instalment R84 641 31 October 2010 Third instalment R84 841 30 April 2011 Fourth instalment R64 641 31 October 2011 ( You may assume that the total comprehensive loss for the year after all the above adjustments have been considered, amounted to R227 519. equity to be disclosed in the statement of financial position of CK Traders as at 31 October 20.0? Fourth instalment R64 641 31 October 20.11 (1) You may assume that the total comprehensive loss for the year, after all the above adjustments have been considered, amounted to R227 519, Which one of the following alternatives represents the correct amount for equity to be disclosed in the statement of financial position of CK Traders as at 31 October 20.0? A. R350 000 B. R575 019 OC. R225 019 OD. R119 981 E. R347 500 Resel Selection Question 8 of 20 to search
