TONE *0194% 11 9:35 LOTT Baddebts Discount alowed 1000 Stationery > Water and lectricity Intrance 2 Telephone 2 3 2 > Operating prote 2 Interest Interest Not profit for the year PG STORES Loading Ad... MO *0194% 19:36 LOTT Net profit for the year 2 PG STORES STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2019 ASSETS Non-currant amet Property, plandement Current assets Inwentores Trade and other recebe Trade debtors Provision for det Prepud sporum Accrued income Cash and can events Bank 5 000 4000 1 500 Petty cash 500 Total 2 EQUITY AND LIABILITIES Equity Capital Non-currant Babies Low Tek Bank 2 Current bites Trade and other des Crector control Incorrected in advance Acru despre Total equity and liabilities Loading Ad... QUESTION 1 (20 MARKS) P. Gumede is the proprietor of PG Stores. He commenced trading on 01 March 2017. At the end of the second year of trading, his bookkeeper resigned unexpectedly and Mr Gumede found that the financial statements for the year ended 28 February 2019 were incomplete. He requires your assistance in completing them. The pre-adjustment trial balance, adjustments and additional information that were extracted from the accounting records as at 28 February 2019 are presented below REQUIRED Complete the financial statements that appear after the adjustments and additional information with the missing amounts and details. The entire statements must be submitted. Where applicable, show your working in brackets Note: The notes to the financial statements and Statement of Changes in Equity are not required INFORMATION PG STORES PRE ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2018 Debit (R) Credit 870 700 234000 So 700 275 00 201 000 14 000 10 000 Balance sheet accounts section Capital Drawing Land and building Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Trading inventory Debtors control Provision for bad debts Bank Cash float Petty cash Creditors control Loan: Tek Bank (12 p.a) 140 000 103000 5 000 4 000 1 500 500 1277 000 100 000 15 000 123 000 4000 66 000 Nominal accounts section Sales Cost of sales Sales returns Wages Bank charges Rent income Packing materials Advertising Rates Bad debts Discount allowed Discount received Stationery Interest on loan Water and electricity Insurance Telephone 13 000 7 000 2 000 1 000 2000 20 000 10 000 9000 16 000 9000 2 540 700 540 700 ADJUSTMENTS AND ADDITIONAL INFORMATION No entry was made for trading inventory that was taken by the proprietor for his personal use, 1 R2 000 Inventories on 28 February 2019 according to physical stocktaking were as follows: 2 2.1 Trading inventory R135 000 2.2 Stationery R2 000 The telephone account of R1 000 for February 2019 was erroneously paid twice, on 25 3. February 2019 and 27 February 2019, 4 Rent has been received up to 31 January 2019 5 A deter.. Peter, was declared insolvent. On 28 February 2019, his insolvent estate paid a first and final dividend of 50 cents in the Rand. An amount of R1 800 was received and recorded. The balance of his account must now be written off 6 The precision for bad debts must be increased by R1 000. 7. The can total includes an amount of R7 200 that was paid for the period 01 November 2018 to 31 October 2019 8 Interest on loan for February 2019 has not yet been paid. Interest is not capitalised Note: A repayment of R18 000 (excluding interest) is expected to be made in March 2019 to reduce the loan balance 9 Depreciation must be brought into account each year as follows: 9.1 On vehicles at 20% per annum using the diminishing balance method. 9.2 On equipmentat 15% per annum on cost. Note: Equipment with a cost price of R20 000 was purchased and recorded on 01 December 2018 REFER TO THE INCOMPLETE FINANCIAL STATEMENTS THAT FOLLOW AND FILL IN THE MISSING AMOUNTS AND DETAILS. WHERE APPLICABLE, SHOW YOUR WORKINGS IN BRACKETS. HIGHLIGHT YOUR ANSWERS FOR THE MISSING AMOUNTS OR SHOW THEM IN BOLD PRINT. R PG STORES STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2019 ASSETS Non-current assets Property, plant and equipment Current assets 7 05 3300 7 Inventories Trade and other receivables Trade debtors 157 000 7 7 100200 18000? Booo 2 5350 7 ? Provision for bad debts Prepaid expenses (Telephone + Insurance Accrued income Cash and cash equivalents 6 000 4 000 Bank 1 500 Cash float Petty cash Coop ? Total assets EQUITY AND LIABILITIES Equity Capital Non-current liabilities 7 79520? Loan: Tek Bank ? ? Current liabilities Trade and other payables Creditors control Income received in advance 18 000 ? 60 000 3000? Accrued expenses Current tion Total equity and liabilities of long term 7 borewings 79.520 18558 TONE *0194% 11 9:35 LOTT Baddebts Discount alowed 1000 Stationery > Water and lectricity Intrance 2 Telephone 2 3 2 > Operating prote 2 Interest Interest Not profit for the year PG STORES Loading Ad... MO *0194% 19:36 LOTT Net profit for the year 2 PG STORES STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2019 ASSETS Non-currant amet Property, plandement Current assets Inwentores Trade and other recebe Trade debtors Provision for det Prepud sporum Accrued income Cash and can events Bank 5 000 4000 1 500 Petty cash 500 Total 2 EQUITY AND LIABILITIES Equity Capital Non-currant Babies Low Tek Bank 2 Current bites Trade and other des Crector control Incorrected in advance Acru despre Total equity and liabilities Loading Ad... QUESTION 1 (20 MARKS) P. Gumede is the proprietor of PG Stores. He commenced trading on 01 March 2017. At the end of the second year of trading, his bookkeeper resigned unexpectedly and Mr Gumede found that the financial statements for the year ended 28 February 2019 were incomplete. He requires your assistance in completing them. The pre-adjustment trial balance, adjustments and additional information that were extracted from the accounting records as at 28 February 2019 are presented below REQUIRED Complete the financial statements that appear after the adjustments and additional information with the missing amounts and details. The entire statements must be submitted. Where applicable, show your working in brackets Note: The notes to the financial statements and Statement of Changes in Equity are not required INFORMATION PG STORES PRE ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2018 Debit (R) Credit 870 700 234000 So 700 275 00 201 000 14 000 10 000 Balance sheet accounts section Capital Drawing Land and building Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Trading inventory Debtors control Provision for bad debts Bank Cash float Petty cash Creditors control Loan: Tek Bank (12 p.a) 140 000 103000 5 000 4 000 1 500 500 1277 000 100 000 15 000 123 000 4000 66 000 Nominal accounts section Sales Cost of sales Sales returns Wages Bank charges Rent income Packing materials Advertising Rates Bad debts Discount allowed Discount received Stationery Interest on loan Water and electricity Insurance Telephone 13 000 7 000 2 000 1 000 2000 20 000 10 000 9000 16 000 9000 2 540 700 540 700 ADJUSTMENTS AND ADDITIONAL INFORMATION No entry was made for trading inventory that was taken by the proprietor for his personal use, 1 R2 000 Inventories on 28 February 2019 according to physical stocktaking were as follows: 2 2.1 Trading inventory R135 000 2.2 Stationery R2 000 The telephone account of R1 000 for February 2019 was erroneously paid twice, on 25 3. February 2019 and 27 February 2019, 4 Rent has been received up to 31 January 2019 5 A deter.. Peter, was declared insolvent. On 28 February 2019, his insolvent estate paid a first and final dividend of 50 cents in the Rand. An amount of R1 800 was received and recorded. The balance of his account must now be written off 6 The precision for bad debts must be increased by R1 000. 7. The can total includes an amount of R7 200 that was paid for the period 01 November 2018 to 31 October 2019 8 Interest on loan for February 2019 has not yet been paid. Interest is not capitalised Note: A repayment of R18 000 (excluding interest) is expected to be made in March 2019 to reduce the loan balance 9 Depreciation must be brought into account each year as follows: 9.1 On vehicles at 20% per annum using the diminishing balance method. 9.2 On equipmentat 15% per annum on cost. Note: Equipment with a cost price of R20 000 was purchased and recorded on 01 December 2018 REFER TO THE INCOMPLETE FINANCIAL STATEMENTS THAT FOLLOW AND FILL IN THE MISSING AMOUNTS AND DETAILS. WHERE APPLICABLE, SHOW YOUR WORKINGS IN BRACKETS. HIGHLIGHT YOUR ANSWERS FOR THE MISSING AMOUNTS OR SHOW THEM IN BOLD PRINT. R PG STORES STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2019 ASSETS Non-current assets Property, plant and equipment Current assets 7 05 3300 7 Inventories Trade and other receivables Trade debtors 157 000 7 7 100200 18000? Booo 2 5350 7 ? Provision for bad debts Prepaid expenses (Telephone + Insurance Accrued income Cash and cash equivalents 6 000 4 000 Bank 1 500 Cash float Petty cash Coop ? Total assets EQUITY AND LIABILITIES Equity Capital Non-current liabilities 7 79520? Loan: Tek Bank ? ? Current liabilities Trade and other payables Creditors control Income received in advance 18 000 ? 60 000 3000? Accrued expenses Current tion Total equity and liabilities of long term 7 borewings 79.520 18558