The following Trial Balance at 30 June 2019 was extracted from the ledger accounts of

PP DISTRIBUTORS CC.

ACCOUNT DESCRIPTION DR CR

Members salaries	30000
Members contribution		450000
Sales		1675000
Cost of Sales	897000
Retained Earnings: 01 July 2018		54200
Interim profit Distribution : Piet	45000
: Plessis	45000
Loan to members: Plessis	80000
Allowance for credit losses		4600
Investment: West Rand Mines (Pty) Ltd	205000
Inventories : Trade Inventories	107500
: Consumable Inventories	13000
: Packaging Material	17000
Land and Buildings	520000
Motor Vehicles	180000
Furniture	77000
Equipment	120000
Prepaid tax: Inland revenue	40000
Accounts receivable	95000
Accrued expense		11600
Accumulated depreciation: Furniture		21000
Accumulated depreciation: Equipment		19000
Investment Income		10300

Long term loan: Bouland Bank		310000
Accounts Payable		106500
Bank	25600
Petty cash	600
Bad debts	1400
Salaries and wages	101000
Distribution costs	77000
Other operating expenses	62000
Loan from member: Piet		96900
Finance costs	20000

2759100

2759100

Additional Information:-

1. The corporation has two members, Piet and Plessis who holds equal interest.

2. At the members meeting conducted in March 2019 it was resolved that:-

Members will be paid a further profit distribution of N$ 25 000 each at year end.

Due to an increase in operations a new Motor vehicle had to be acquired. On the 01

April 2019 a vehicle with a cost price of N$ 180 000 was acquired. No vehicles existed prior to this acquisition. The correct entries were processed to record the purchase of the vehicle.

No assets were sold during the year.

The loan from Piet, accrues interest at a rate of 8% per annum. No fixed repayment terms were agreed upon and the loan is unsecured. Interest has not be taken into account yet.

No interest will be levied on Loans to member: Plessis, as it has always been done in the past. No interest accrual will be made for the year ended 30 June 2019.

Land and Buildings was revaluated for the first time this year. Jacobus Oosthuizen, a sworn valuator was appointed to value the property and he attached a value of N$ 740 000 at 30 June 2019.

3. Depreciation for the current year has not been accounted for. It has been the policy of the entity to depreciate assets as follows:-

a. Furniture : 20 % p.a on reducing balance basis b. Equipment : 10% p.a on straight line basis

c. Motor Vehicles: 20% p.a on straight line basis

4. Total taxation expense for the year was calculated to be N$ 67 500, but no entry has been made to record this yet.

5. A debtor with a balance of N$ 550 must still be written off as irrecoverable. Allowance for credit losses must be adjusted to 6% of the outstanding debtors at year end.

YOU ARE REQUIRED

1. Prepare the Statement of comprehensive income of PP Distributors for the year ended 30

June 2019. No notes are required. (12.5)

2. Prepare the ASSETS section of the Statement of financial position at 30 June 2019. (10.5)