SCOREBOARD LIMITED PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2018

Balance Sheet Accounts Section DEBIT CREDIT

Ordinary share capital (R2 ea) 280 000

Ordinary share premium 30 000

Retained Income 41 000

Loan from Umgeni Bank (18% p.a.) 27 000

Land and Buildings 360 000

Equipment 50 000

Accumulated depreciation on equipment 20 000

Inventory 82 000

Trade debtors 40 000

Allowance 1 500

Bank 16 300

Cash float 750

Petty cash 250

Trade creditors 12 800

SARS (Income tax) 7 000

Nominal accounts section

Sales 476 000

Sales returns 8 000

Cost of sales 208 000

Salaries and wages 90 000

Directors fees 17 000

Audit fees 4 000

Interest on loan 2 000

Credit losses 1 400

Rent income 9 900

Commission income 7 700

Packing material 2 600

Insurance 400

Sundry expenses 11 200

Dividends on ordinary shares (interim) 5 000

Adjustments to be effected on 28 February 2018

1. The following was found as per physical count.

1. 1. Trading Stock R80 300 1. 2. Packing Material R700 2. Depreciate equipment at 10% p.a. on the diminishing balance method. 3. Write of further credit losses of R2000. 4. Adjust allowance for credit losses to 5% of trade debtors. 5. Provide for the outstanding interest on loan. 6. Provide rates at 2% on value of land and buildings. 7. Final Dividends of 5 cents per share was declared on 28 February 2018 Income Tax is calculated 28% of net profit

REQUIRED: Use the information above and draw up the following:

1. STATEMENT OF COMPREHENSIVE INCOME 2. Assume that board of directors decide to plough back 60% of the net profit, how much would be paid out to shareholders?