QUESTION TWO

$[25]$

The following information was extracted from the accounting records of Plum Plumbers for the year ended $28$ February $2021.$ Dan and Michael are owners in this partnership sharing profits and losses equally.

Balances extracted from the general ledger at $28$ February $2021$

Profit and loss account$-$profit for the year

$440\mathrm{.}000$

Capital$-$Dan

$350000$

Capital$-$Michael

$250\mathrm{.}000$

Current account$-$Dan $($Credit balance at $1$ March $2020).$ I

$30000$

Current account$-$Michael $($Debit balance at $1$ March $2020)$

$20\mathrm{.}000$

Drawings $-$ Dan

$31300$

Drawings$-$Michael

R

$37500$

$5$Financial Reporting Standards $($IFRs$)$ appropriate to this business.Show all workings. Your answer must comply wth the requirements of the lnternatbonalnot requiredin the Propety. plant and equipment note Columns for land & buldings and total are$(25)22$ Prepare the columns for only Vehicdes and Equpment as they would be shoan$21$ The statement of proft or loss and other comprehensive income, andPrepare the following for Zdane's Electrics for the financial year ending $31$ Decernber $2020.$Required:show a balance of only R$50010$ It was agreed that the 'allowance for credt losses account needs to be adjusted topaid $60\%\%$ of the debt The balance needs to be wnitten$-$oft$\mathrm{.}9.$ A debtors account of R$1000$ has long been outstanding The debtors insolvent estatein January$8$ The December $2020$ telephone account of R$330$ was recelved in December but only padOctober $2021.$ The ful year insurance payment was pad upfront on $1$ Novenber $20207$ Insurance indudes an amount of R$1500$ paid for a $12-$month period ending cn $31$and December $2020$ Interest is calculated at $12\%$ per year$6.$ Interest on the fixed depost at Third Bank has not yet been received for November $2020$months at a rate of $18\%$ per year$\mathrm{.}5.$ The long$-$term borrowing was taken on $30$ September $2020$ Interest is pay able every $62021$ rerntal Rent remained constant over the ful period$4$ Rental income was receved from Zdane's only tenant. The rent includes the Januaryperiod $1$ May $2020$ to $28$ February $20213.$ Advertisement cost of R$4000$ is excilusively for an advertising campagn covering theNA$1$ Jan. $2020-$R$76070200000342022400$Depreciaton atAccumulated$500$Equpment at cost$-$ R$18000$: includes equpnent bought for cash at a cost of R$40002$ B$0094001100240441300330800$equiprnent as followson $1$ Juy $2020$ Provide depreciation for the year for al property plant and$2.$ Resuts of a physical stock taken on $31$ Decermber $2020$ reveled that$1000020\%$ per year on the dminishing balance method$\mathrm{.}10\%$ per year on the dmiishing balance method$22$ Packing material on hand was R$196021$ Trading goods on hand was R$114500,$ and$18000$BO O$003000002020-$RCost at $31$ Dec.Vehicie:EquipmentEquipmertVehicleLand & buldingsType of Property, plant and equipment$1.$ The following information is avalable for Property, plant and equipmentAdditional inform ation:Other expensesSettlement discounts grantedAdvertisementsTelephoneInsurancePacking materials used.Credt lossesCost of salesCredit losses recoveredInterest on investmentSettlement discounts recelved$31200240076358019100500002648028340012001062006001040011700010000025820398000$Retal ncomeSaes rethurrs$20)$Trade cred torsLong tern borrowng ABC FinarnceCaptal$-$ZdanaCash foatDrawgAllowaroe far credt lossesTrade dettorsIvertory Trade goodsFucnd depcait Thrd BankTotal accumulated deprecaton at $1$ Jauary $2020$BankProperty pant and equpment af cost $($addonal information $1)$List of pre$-$adjustment balances as at $31$ Decembar $2020.$was provdedDidare an eLFrench foothal player, now OWs an electncal shop The folowng informatonbe acoepted or reectedCalculae the net presert value of the projec and advse whether the project shouldQUESTION TWORequired.Dscount rats$-10\%$TRK rate$-28\%$There is a tax impact on the salvage value$$ Salvage value of eaupment at end of year $3-$R$100000$tax deduction$$ The Recever of Revenue does not alow the provision for stock l$0$ss$$s as $3$Further detals are as lolows