QUESTION ONE [25] The information provided below was extracted from the accounting records of Sahara Traders on 28 February 2021, the end of the financial year. Use the trial balance, additional information and adjustments to prepare the Statement of Financial Position of Sahara Traders as at 28 February 2021. Note: The Statement of Comprehensive Income and notes to the financial statement are not required. INFORMATION SAHARA TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2021 ADDITIONAL INFORMATION AND ADJUSTMENTS 1. The net profit for the year ended 28 February 2021 according to the Statement of Comprehensive Income, after taking the following adjustments into account is R102 050. 2. According to physical stocktaking on 28 February 2021, the following inventories were on hand: 2.1 Trading inventory, R103 000. 2.2 Consumable stores, R200. 3. Rent has been paid up to 31 March 2021. Note: The rent was increased by R350 per month with effect from 01 February 2021. 4. A debtor who owed R1 000 was declared insolvent. Forty percent (40\%) of the amount owing was received from his insolvent estate on 27 February 2021 and recorded. The balance of his account must now be written off. 5. The allowance for credit losses must be decreased by R300. 6. Provide for outstanding interest on the loan from Maxi Bank. The loan was obtained on 01 March 2020. Loan repayments totalling R20 000 are expected to be made in the next financial year. 7. The telephone account for February 2021 has not yet been paid, R800. 8. According to the bank statement, service fees of R200 were levied by the bank. This has not yet been recorded. 9. Received a cheque for R500 from H. Hilton whose account was written off previously. No entry has yet been made for this. 10. A payment of R700 for insurance was erroneously posted to the electricity and water account. 11. A debtor whose account of R4000 was overdue for 1 month must be charged interest at 15% per annum. 12. Provide for depreciation as follows: 12.1 On equipment at 10% per annum on cost. 12.2 On vehicles, R19 650. QUESTION TWO [20] The information given below was extracted from the accounting records of James Redmond Traders, a partnership business with James and Redmond as partners. Required: Prepare the Statement of Changes in Equity for the year ended 29 February 2020. INFORMATION The following must be taken into account: (a) The Statement of Comprehensive Income reflected a net profit of R450 000 for the year ended 29 February 2020. (b) The partnership agreement provided for interest on capital at 12% p.a. on the balances on the capital accounts. Note: James increased his capital contribution by R100 000 on 01 June 2019 whilst Redmond decreased his capital contribution by R100 000 on 01 September 2019. The capital changes have been recorded. (c) Interest of 10% is charged on the opening current account balances for each partner. (d) The partners are entitled to the following monthly salaries from 01 March 2019 to 30 November 2019: James R12000 Redmond R10 000 Note: The salaries of the partners were increased by 10\% with effect from 01 December 2019 (d) The balance of the profit must be in the ratio of the partners' capital account balances at the beginning of the financial year. QUESTION FOUR [25] The following balances as at the 1 January 2020, were extracted from the accounting records of De Ligt Wholesalers. The following information needs to be taken into account for the year ended 31 December 2020 1. The Land and Buildings were purchased on 31 December 2019. Land was valued at R400000 at purchase. De Ligt decided to adopt a straight-line method of depreciation at 2.5% per annum for buildings. Land will not be depreciated. 2. An old motor vehicle which cost R120000 and had accumulated depreciation of R80 000 at 1 January 2020, was sold for R40 000 on 30 June 2020. Motor Vehicles are depreciated evenly over the estimated useful life of 5 years. No additional motor vehicles were purchased during the 2020 financial year. 3. Equipment is depreciated at 15% per year on the diminishing balance method. New equipment was purchased on 1 July 2020 for R50 000. No equipment was sold during the financial year. Required Prepare the Property, Plant and Equipment Note as it would appear in the financial statement of De Ligt Wholesalers. You can leave out the 'Total' column. Show all your workings QUESTION THREE The following extracts of the financial statements of Rockgrip Industries were presented to you: Statement of Comprehensive Income (Income statement) for the year ended 30 June: Statement of Financial Position (Balance sheet) as at 30 June: Maditionai intormation: 1. All sales and purchases are made on credit. 2. Depreciation included in operating expenses for the year ending 30 June 2020: Office machinery R200 000 and Motor vehicles R240 000 . No asset was sold during this period. 3. Inventories for the year ending 30 June 2018 amounted to R460 000. 4. Dividend declared for the year ended 30 June 2020 amounted to R360 000. 5. The ordinary shares have a par value of R1