The trial balance, adjustments and additional information given below were extracted from the accounting records of

Royal Traders on 28 February 2021, the end of the financial year.

Adjustments and additional information

1. According to the physical stocktaking completed on 28 February 2021, the following inventories were on hand:

1.1 Trading inventory, R136 000

1.2 Stationery, R600.

2. An account received from Airtel Fitters on 28 February 2021 for the installation of an air conditioning unit in one

of the vehicles was debited to the motor expenses account in error, R6 000.

3. No entry has been made for interest at 12% p.a. that was charged for two months on the overdue account of a

debtor who owed R6 000.

4. An electronic funds transfer for R1 330 was made to Royal Traders on 28 February 2021 from a debtor, after a

settlement discount of 5% was deducted. No entries have been made for this transaction.

5. The provision for bad debts must be decreased to R3 000.

6. The telephone account for February 2021 was due to be paid on 02 March 2021, R1 400.

7. Rent expense has been paid up to 31 March 2021. Note: The rental was increased by 10% with effect from

01 December 2020. Make the necessary adjustment.

8. Interest on loan for February 2021 has not been paid,

9. The insurance total includes an annual premium of R4 800 that was paid for the period 01 June 2020 to 31

May 2021.

10. Cash deposit fees of R600 that appeared in the February 2021 bank statement were left out in error when the

cash journals for February 2021 were prepared and posted.

11. Provide for depreciation as follows:

11.1 On equipment at 10% per annum on cost.

Note: Equipment that cost R20 000 was purchased on 01 September 2020. The purchase has been

recorded.

11.2 On vehicles at 20% per annum on the diminishing balance.

32.800 Oto.com Norger Le Bas (2) 100.000 QUESTION Proteftant of Corporate com o Bayaran February 2011 Nominal accounts section 1000000 Se INFORMATION Costel 0000 How to do they Sesume 0000 HOYAL TRADERE Stones and we 178000 PREDAM TIL BALANCE AS AT 2 FEBRUARY Sadet 2000 De Credi 4000 che consi Restore 180 01000 4000 turing 1970 Bedcovered 2000 000 Teore F 140 000 Electricity and we 2000 000 uchage 6000 ment 000 29 140 000 mero 3400 DO Den 000 Como com 10000 8000 18110 181.800 008 1000 Adjustments and additional information 1 According to the physical stocktaking completed on 28 February 2021 the following inventories were on hand: 1.1 Trading inventory, R136 000 1.2 Stationery, R600 2. An account received from Airtel Fitters on 28 February 2021 for the installation of an air conditioning unit in one of the vehicles was debited to the motor expenses account in error, R6 000 3. No entry has been made for interest at 12% p.a. that was charged for two months on the overdue account of a debtor who owed R6 000 4 An electronic funds transfer for R1 330 was made to Royal Traders on 28 February 2021 from a debtor, after a settlement discount of 5% was deducted. No entries have been made for this transaction 5. The provision for bad debts must be decreased to R3 000. 6. The telephone account for February 2021 was due to be paid on 02 March 2021, R1 400. 7 8. Rent expense has been paid up to 31 March 2021. Note: The rental was increased by 10% with effect from 01 December 2020. Make the necessary adjustment. Interest on loan for February 2021 has not been paid. The insurance total includes an annual premium of R4 800 that was paid for the period 01 June 2020 to 31 May 2021 9. 10. Cash deposit fees of R600 that appeared in the February 2021 bank statement were left out in error when the cash journals for February 2021 were prepared and posted 11. Provide for depreciation as follows: 11.1 On equipment at 10% per annum on cost. Note: Equipment that cost R20 000 was purchased on 01 September 2020. The purchase has been recorded 112 On vehicles at 20% per annum on the diminishing balance