The following Trial Balance at 30 June 2019 was extracted from the ledger accounts of PP DISTRIBUTORS CC:

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 (show All workings) 1. Prepare the Statement of comprehensive income of PP Distributors for the year ended 30 June 2019. No notes are required. (12.5 Marks) 2. Prepare the ASSETS section of the Statement of financial position at 30 June 2019. (10.5 Marks)

ACCOUNT DESCRIPTION DR CR 30 000 450 000 1 675 000 897 000 54 200 45 000 45 000 80 000 4 600 Members salaries Members contribution Sales Cost of Sales Retained Earnings: 01 July 2018 Interim profit Distribution : Piet Plessis Loan to members: Plessis Allowance for credit losses Investment: West Rand Mines (Pty) Ltd Inventories : Trade Inventories : Consumable Inventories Packaging Material Land and Buildings Motor Vehicles Furniture Equipment Prepaid tax: Inland revenue Accounts receivable Accrued expense Accumulated depreciation: Furniture Accumulated depreciation: Equipment Investment Income Long term loan: Bouland Bank Accounts Payable 205 000 107 500 13 000 17 000 520 000 180 000 77 000 120 000 40 000 95 000 11 600 21 000 19 000 10 300 310 000 106 500 Bank 25 600 600 Petty cash Bad debts 1 400 101 000 Salaries and wages Distribution costs Other operating expenses Loan from member: Piet Finance costs 77 000 62 000 96 900 20 000 2 759 100 2 759 100