R98 000 ADDITIONAL INFORMATION AND ADJUSTMENTS: 1. According to the physical stocktaking on 31 March 2017 the following were found: Trading stock Consumable stores R760 Stationery R244 2. Depreciation must be calculated as follows: On equipment at 10% p.a. according to the diminishing balance method Take into account that equipment to the value of R4 000 was bought on 1 January 2017 12200 On vehicles at 20% pa, on cost price. 10 3. J Solomon is insolvent and it has been decided to write off his debts of R600 as irrecoverable 4. Adjust the provision for bad debts to 4% of debtors and create a provision for discount allowed of 5%. (Round to the nearest rand) 5. Commission has been received up to 31 May 2017 6. The rent has been paid until 30 June 2017. There was no increase in the rent for the past years. 7. The interest on the loan is still due. The loan was obtained on 1 October 2016 8. Adjust the interest on the fixed deposit accordingly REQUIRED 2.1 Draw up the income statement of Madzi Traders for the year ended 31 March 2017 Complete only the ASSETS section of the balance sheet, with the applicable notes as indicated in the answer book [76] OMP 15 22 QUESTION 1 The following information was extracted from the books of Madzi Traders on 31 March 2017 PRE-ADJUSTMENT TRIAL BALANCE OF MADZI TRADERS ON 31 MARCH 2017 BALANCE SHEET ACCOUNTS SECTION Capital Drawings Land and buildings Equipment @ cost Vehicles @ cost Loan: FNB Bank 15% p.a.) Fixed deposit: AU Bank (15% p.a.) Accumulated depreciation Equipment : Vehicles 8 640 Trading stock (1 April 2016) Debtors control Bank overdraft 12 732 Petty cash Cash float Creditors control 11 428 800 Provision for bad debts 13COMP15 178 560 Sales Purchases 99 200 560 1 200 2 688 5 760 > 1 848 712 38 972 2916 1 400 Licences 1 600 Telephone Electricity Advertisements Stationery Bank charges Carriage on purchases 1 948 2 584 2 112 1 444 576 2 160 425 644 425 644 R98 000 ADDITIONAL INFORMATION AND ADJUSTMENTS: 1. According to the physical stocktaking on 31 March 2017 the following were found: Trading stock Consumable stores R760 Stationery R244 2. Depreciation must be calculated as follows: On equipment at 10% p.a. according to the diminishing balance method Take into account that equipment to the value of R4 000 was bought on 1 January 2017 12200 On vehicles at 20% pa, on cost price. 10 3. J Solomon is insolvent and it has been decided to write off his debts of R600 as irrecoverable 4. Adjust the provision for bad debts to 4% of debtors and create a provision for discount allowed of 5%. (Round to the nearest rand) 5. Commission has been received up to 31 May 2017 6. The rent has been paid until 30 June 2017. There was no increase in the rent for the past years. 7. The interest on the loan is still due. The loan was obtained on 1 October 2016 8. Adjust the interest on the fixed deposit accordingly REQUIRED 2.1 Draw up the income statement of Madzi Traders for the year ended 31 March 2017 Complete only the ASSETS section of the balance sheet, with the applicable notes as indicated in the answer book [76] OMP 15 22 QUESTION 1 The following information was extracted from the books of Madzi Traders on 31 March 2017 PRE-ADJUSTMENT TRIAL BALANCE OF MADZI TRADERS ON 31 MARCH 2017 BALANCE SHEET ACCOUNTS SECTION Capital Drawings Land and buildings Equipment @ cost Vehicles @ cost Loan: FNB Bank 15% p.a.) Fixed deposit: AU Bank (15% p.a.) Accumulated depreciation Equipment : Vehicles 8 640 Trading stock (1 April 2016) Debtors control Bank overdraft 12 732 Petty cash Cash float Creditors control 11 428 800 Provision for bad debts 13COMP15 178 560 Sales Purchases 99 200 560 1 200 2 688 5 760 > 1 848 712 38 972 2916 1 400 Licences 1 600 Telephone Electricity Advertisements Stationery Bank charges Carriage on purchases 1 948 2 584 2 112 1 444 576 2 160 425 644 425 644