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The following is a pre - adjusted Trial balance of Albany ( Pty ) Ltd on 2 8 February 2 0 2 1 . Balance
The following is a preadjusted Trial balance of Albany Pty Ltd on February
Balance sheet section
Capital
Drawings
Land and buildings
Equipment
Accumulated depreciation March
Fixed deposit: TT Bank pa
Loan: BTK Bank pa
Inventory March
Debtors control
Creditors control
Bank
Petty cash
Nominal Accounts
Sales
Purchases
Sales returns
Purchases returns
Rent income
Interest on fixed deposit
Bank charges
water & electricity
Telephone
Insurance
Interest on loan
Rates and taxes
Salaries & wages
Consumables stores
Advertising
Adjustments and additional information
Inventory on hand on February amounted to R Inventories are measured at cost on a FIFO method and at net
realisable value, whichever is the lower.
Consumable stores according to stocktaking on February amounted to R
Advertising included a payment of R for advertisements to appear in a local newspaper from November to April
Depreciation is provided annually on equipment at pa using the diminishing balance method.
The loan from BTK bank is an unsecured loan that was granted to Albany Pty Ltd on February Provide for outstanding interest
on loan. The loan is repayable in equal instalments. The first instalment is payable on March
The investment at TT Bank was made on June Provide for outstanding interest on the fixed deposit. The fixed deposit matures
on June
The tenant has already paid the rent for March Note that the monthly rental of R was increased by with effect from
December
A debit order for R for the insurance of the owners home was erroneously entered in the Insurance account.
A debtor who owed R has been declared insolvent. His estate paid a first and final dividend of cents in the Rand. The balance of
his account must be written off. No entries have been made for these transactions.
A debtors account with a credit balance of R must be transferred to her account in the creditors ledger.
Required
Prepare statement of comprehensive income of Albany Pty Ltd for the year ended February
Question marks
Using examples, explain the following terms:
a Accrual concept
b Consistency
c Materiality
d Going concern
e Matching concept
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