1. Extracted from the Pre-Adjustment Trial Balance at 30 June 2021: R 160 000 219 800 Fixed deposit Inventory: Trade goods Debtors control Machinery Accumulated depreciation: Machinery Long term borrowing: Finhouse Sales Debtors allowances Cost of sales Service fee income (in respect of repair services) Rent income Interest income Salaries and wages Audit fees Directors fees Consumable stores Bank charges Travel and entertainment - Directors 39 090 224 000 130 000 281 200 1 680 000 17 000 1 050 000 297 140 105 000 11 200 294 640 30 000 230 000 51 100 5 240 15 910
Samke Limited sells new equipment and repairs equipment for their regular customers.
The following information was extracted from the accounting records for the financial
year ended 30 June 2021
2. Adjustments and additional information:
The internal auditors have identified the following errors or omissions:
2.1 auditors are owed a further R28 000 in audit fees.
2.2 Bank charges of R310 reflected on the June 2021 bank statement have not
yet been entered in the books.
2.3 The stock count on 30 June 2021 revealed the following on hand:
• Inventory: Trade goods; R202 000
• Consumable stores; R900
2.4 The tenant paid the July and August rent in June 2021. The rent was
increased by R700 per month on 1 January 2021.
2.5 Provide for
method. Note that new machinery costing R30 000 was purchased on 31
December 2020, (this was recorded correctly).
2.6 Interest on the loan was capitalised. The loan statement from Finhouse on
30 June 2021 reflects the following:
FINHOUSE
Loan statement at 30 June 2021
Balance on 1 July 2020 R332 800
Interest charged ?
Monthly instalments of R4 300 x 12 paid R 51 600
Balance on 30 June 2021 R326 000
The interest expense for the year has not yet been entered in the books.
2.7 A credit note issued to a debtor, S Moon, dated 28 June 2021 was not recorded
in the books. The credit note was for price reduction on unsatisfactory repair of a
piece of equipment, R540.
2.8 Assume a company tax rate of 30%.
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