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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 pre-adjusted Trial balance of Albany (Pty) Ltd on 28 February 2021.
Balance sheet section
Capital 596400,00
Drawings 130500,00
Land and buildings 600000,00
Equipment 145000,00
Accumulated depreciation (1 March 2020)33000,00
Fixed deposit: TT Bank (8% p.a)50000,00
Loan: BTK Bank (16% p.a)60000,00
Inventory (1 March 2020)105330,00
Debtors control 51630,00
Creditors control 74400,00
Bank 18720,00
Petty cash 1500,00
Nominal Accounts
Sales 841600,00
Purchases 408760,00
Sales returns 6000,00
Purchases returns 4500,00
Rent income 80400,00
Interest on fixed deposit 2000,00
Bank charges 2700,00
water & electricity 18810,00
Telephone 5250,00
Insurance 5850,00
Interest on loan 7250,00
Rates and taxes 24600,00
Salaries & wages 84640,00
Consumables stores 10960,00
Advertising 14800,00
Adjustments and additional information
1. Inventory on hand on 28 February 2021 amounted to R91000. Inventories are measured at cost, on a FIFO method and at net
realisable value, whichever is the lower.
2. Consumable stores according to stocktaking on 28 February 2021 amounted to R900.
3. Advertising included a payment of R1080 for advertisements to appear in a local newspaper from 1 November 2020 to 30 April 2021.
4. Depreciation is provided annually on equipment at 10% p.a. using the diminishing balance method.
5. The loan from BTK bank is an unsecured loan that was granted to Albany (Pty) Ltd on 01 February 2020. Provide for outstanding interest
on loan. The loan is repayable in 10 equal instalments. The first instalment is payable on 31 March 2021
6. The investment at TT Bank was made on 1 June 2020. Provide for outstanding interest on the fixed deposit. The fixed deposit matures
on 1 June 2021.
7. The tenant has already paid the rent for March 2021. Note that the monthly rental of R6000 was increased by 10% with effect from 1
December 2020.
8. A debit order for R500 for the insurance of the owners home was erroneously entered in the Insurance account.
9. A debtor who owed R800 has been declared insolvent. His estate paid a first and final dividend of 70 cents in the Rand. The balance of
his account must be written off. No entries have been made for these transactions.
10. A debtors account with a credit balance of R200 must be transferred to her account in the creditors ledger.
Required
Prepare statement of comprehensive income of Albany (Pty) Ltd for the year ended 28 February 2021.
Question 2(10 marks)
Using examples, explain the following terms:
2a. Accrual concept (2)
2b. Consistency (2)
2c. Materiality (2)
2d. Going concern (2)
2e. Matching concept (2)

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