TUTORIAL LETTER SEMESTER 1/2020 BUSINESS ACCOUNING 1A BAC1100 ASSIGNMENT 2 Question 1 MARKS: 27 Below please find the records of Smartkid Entity as at 31 December 2019 SmartKid Entity Trial balance as at 31 December 2019 CR NS 240,000 80,000 17,500 Land and buildings Vehicles (at cost) Furniture (at cost) 10% Long-term Fixed deposit: Nedbank Capital Drawings Long-term loan: FNB 48,000 320,000 16,000 16,000 60,000 Accounts receivable: control Accounts payable: control 32,800 80,000 2,700 680,000 Closing Inventory Bank (overdraft) Sales Cost of sales Sales returns Rent income Interest income 400,000 2,000 44,000 2,400 Salaries and wages 147,600 800 Stationery Credit losses 6,000 1,120,400 1,120,400 BUSINESS ACCOUNING 1A SEMESTER 1/2020 BAC1100 Required: a Prepare the statement of Profit or loss for the reporting period ended 31 December 2019 b. Prepare the Statement of Financial Position as at 31 December 2019 (15) Question 2 MARKS: 13 a) You are given the following transactions of Fixing Fridges, a sole trader, which repairs refrigerators in Oshakati. Fixing Fridges is a registered VAT vendor i) Bought spare parts with a cheque to perform repairs from Speedy Spares for NS 230 (including VAT). Speedy is a registered VAT vendor. Performed repairs for a customer (who is not registered for VAT) for! NS 1000 (excluding VAT). The customer paid cash. Bought tea, coffee and sugar for the staff members of Fixing Fridges to consume during office hours. This was purchased from Pick and Pay! (a VAT vendor) for NS 300 including VAT Paid salaries to staff amounting to NS 18 000. Bought spare parts from a non-registered vendor for NS 800 on credit. Repaired a fridge for a customer on credit. The total amount owing by the customer is NS 1 500. ss3 Required: a) Prepare the journal entries for the above transactions. If no VAT is applicable, state the reason for your