QUESTION TWO Eric Ngidi the sole proprietor of a general dealer, Welcome Traders, provided you with the following relevant accounting records for the financial year ended 28 February 2023 Pre-adjustment trial balance at 28 February 2023 Land and buildings at cost Equipment at cost Accumulated depreciation: equipment Fixed deposit: Bold Bank (12% per year) Accounts receivable (Debtors) Allowance for credit losses Inventory: merchandise (Trade goods) Bank Capital: Ngidi Drawings 3 Long term borrowing: Rabada Finance (16% per year) Accounts payable (Creditors) Sales Cost of sales Consumable expenses Sales returns Settlement discounts granted Salaries and wages Advertising Electricity and water Rates and Taxes Insurance Interest on long term borrowing Interest on fixed deposit Rent income Debit-R 600 000 135 000 60 000 51 630 105 330 20 220 130 500 Credit-R 422 400 2400 3700 2300 93 510 4 800 18 810 33 000 24 600 5850 11250 2850 593 550 60 000 74 400 844 500

QUESTION TWO Erin Mast.... follows: Inventories: Merchandise (Trade gooth) R103 500 Inventories: Consumable ilema June 2023. 3. The rent income for February 2023 is stil outstanding. The montly wet sd not oungo bet increased by 10% and recorded as outstanding at 28 Fetruary 2022 payment of 60 cents in the Rand. The amount receved nas conedty rocobid lowest, the balance of the account must now be written off as a cuest bas. 5. The allowance for credit losses must be adjusted to 5 hi doutining Dever Interest on the fixed depost is recelved on a monthily Additional information and adjustments: follows: Inventories: Merchandise (Trade gooss) Inventories: Consumable items June 2023. increased by 10% and recorded 35 a palance of the ac 5. The allowance for credit losses must be adjueted to 5% ol outhanding Detion. 6. On 25 February 2023, an Electrical Fund Transfer (EFT) depceit d R2 250 wat nada by E Lucky, a debtor whose account was previously writlen ofl. No erities havo ben make. 7. Provide for depreciation of Equipment at 10% per year using the diminiting taknan mathoc The purchase on 1 February 2023 of Equipment costing R45 000 has not yet benn nocusd 8. The telephone account of R900 for February 2023 , has not been nocorded nor pid 9. The fixed deposit at Bold Bank was made on 1 July 2022 and mathes on 31 kugus 2023 Interest on the fixed deposit is received on a monthy bacis. obtained on 28 February 2022 . Equal annual repayments of R15 000 wil contramea on 1 March 2023. Required: appropriate to this entity and its type of business show al workens