QUESTION THREE

The following information was extracted from the book of XY Ltd for the year 30 September 2016. Extract of a Trial Balance as 30 September 2016

NOMIMAL SECTION	Debit (R)	Credit (R)
Sales	1 312 500
Cost of Sales	475 120
Commission		19 00
Rent	70 000
Salaries	130 400
Carriage on Sales	50 000
Carriage on Purchases	40 000
Bad debts	20 000
Electricity	46 500
Stationary	102 400
BALANCE SHEET SECTION
Land and Building	700 000
Shares on JSE	17 050
Debtors	180 636
Provision of bad debts		20 000
Bank	8 000
Petty Cash	450
Ordinary Share Capital		400 000
Share Premium		50 000
Retained Earnings- 1 October 2015		60 391
Long term loan		144 000
Creditors		103 026

Additional information:

An annual stock count at 30 September showed that the business had stock worth R15 150.

Write off a further R3 500 as bad debts.

Adjust the provision of bad debts to R23 500.

Profit for the year was R84 193.

Income tax was provided for as R52 576. It is a business for tax to be paid on the 1^st of October each year.

Dividends declared were R5 000.

Required:

Prepare a Statement of Financial Position as at 30 September 2016.