Homework Help is Here – Start Your Trial Now!
Business
Accounting
INFORMATION The information given below was extracted from the accounting records of Cheshire Limited on 31 December 2023 (the end of the financial year). CHESHIRE LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2023 Balance Sheet Accounts Section Debit (R) Credit (R) Ordinary share capital 1 600 000 200 000 Retained earnings Land and buildings Vehicles (cost) 2 700 000 650 000 Equipment (cost) 500 000 Accumulated depreciation on vehicles 250 000 Accumulated depreciation on equipment 200 000 Debentures (10% p.a.) 1 300 000 Debtors control 180 000 Provision for bad debts 10 000 Bank 115 000 Creditors control 465 000 South African Revenue Services: Company tax 145 000 Nominal accounts section Sales Purchases Sales returns Purchases returns Opening inventory Carriage on purchases Maintenance Rates Carriage on sales Wages and salaries Stationery Bad debts Sundry expenses Insurance Telephone Water and electricity Directors' fees Auditor's fees Ordinary share dividends 3 785 000 2 055 000 25 000 165 000 550 000 40 000 35 000 25 000 50 000 400 000 5 000 10 000 35 000 15 000 35 000 40 000 240 000 25 000 100 000 7 975 000 7 975 000

INFORMATION The information given below was extracted from the accounting records of Cheshire Limited on 31 December 2023 (the end of the financial year). CHESHIRE LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2023 Balance Sheet Accounts Section Debit (R) Credit (R) Ordinary share capital 1 600 000 200 000 Retained earnings Land and buildings Vehicles (cost) 2 700 000 650 000 Equipment (cost) 500 000 Accumulated depreciation on vehicles 250 000 Accumulated depreciation on equipment 200 000 Debentures (10% p.a.) 1 300 000 Debtors control 180 000 Provision for bad debts 10 000 Bank 115 000 Creditors control 465 000 South African Revenue Services: Company tax 145 000 Nominal accounts section Sales Purchases Sales returns Purchases returns Opening inventory Carriage on purchases Maintenance Rates Carriage on sales Wages and salaries Stationery Bad debts Sundry expenses Insurance Telephone Water and electricity Directors' fees Auditor's fees Ordinary share dividends 3 785 000 2 055 000 25 000 165 000 550 000 40 000 35 000 25 000 50 000 400 000 5 000 10 000 35 000 15 000 35 000 40 000 240 000 25 000 100 000 7 975 000 7 975 000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
See similar textbooks
icon
Related questions
Question
Additional information
 
1. Physical stocktaking on 31 December 2023 revealed the following inventories :  Trading inventory, R180 000
                                                                                                                                   Stationery, R1 000,
2. A notice from the municipality reflected the rates assessment for the year ended 31 December
2023 to be R24 000.
3. Depreciation must be provided as follows: On vehicles. R80 000,
                                                                        On equipment at 10% per annum on cost. Note: Equipment with a                                                                              cost price of R100 000 was purchased on 01 July 2023. This                                                                                        transaction has been recorded,
4. A debtor, who owed R5 000, was declared insolvent. Cheshire Limited received and recorded 40% of the amount owed . The balance of his account must now be written off.
5.  The insurance total includes an insurance premium of R6 000 that was paid for the period 01 April 2023 to 31 March 2024.
6. An amount of R69 535 was overpaid to South African Revenue Services for company tax.
7. The provision for bad debts must be increased to R11 000.
8. Provide for interest on debentures that is yet to be paid.
9. An amount of R69 535 was overpaid to South African Revenue Services for company tax.
 
Help me to prepare the statement of comprehensive income for the year ended 31 december 2023. 
INFORMATION The information given below was extracted from the accounting records of Cheshire Limited on 31 December 2023 (the end of the financial year). CHESHIRE LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2023 Balance Sheet Accounts Section Debit (R) Credit (R) Ordinary share capital 1 600 000 200 000 Retained earnings Land and buildings Vehicles (cost) 2 700 000 650 000 Equipment (cost) 500 000 Accumulated depreciation on vehicles 250 000 Accumulated depreciation on equipment 200 000 Debentures (10% p.a.) 1 300 000 Debtors control 180 000 Provision for bad debts 10 000 Bank 115 000 Creditors control 465 000 South African Revenue Services: Company tax 145 000 Nominal accounts section Sales Purchases Sales returns Purchases returns Opening inventory Carriage on purchases Maintenance Rates Carriage on sales Wages and salaries Stationery Bad debts Sundry expenses Insurance Telephone Water and electricity Directors' fees Auditor's fees Ordinary share dividends 3 785 000 2 055 000 25 000 165 000 550 000 40 000 35 000 25 000 50 000 400 000 5 000 10 000 35 000 15 000 35 000 40 000 240 000 25 000 100 000 7 975 000 7 975 000
Transcribed Image Text:INFORMATION The information given below was extracted from the accounting records of Cheshire Limited on 31 December 2023 (the end of the financial year). CHESHIRE LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2023 Balance Sheet Accounts Section Debit (R) Credit (R) Ordinary share capital 1 600 000 200 000 Retained earnings Land and buildings Vehicles (cost) 2 700 000 650 000 Equipment (cost) 500 000 Accumulated depreciation on vehicles 250 000 Accumulated depreciation on equipment 200 000 Debentures (10% p.a.) 1 300 000 Debtors control 180 000 Provision for bad debts 10 000 Bank 115 000 Creditors control 465 000 South African Revenue Services: Company tax 145 000 Nominal accounts section Sales Purchases Sales returns Purchases returns Opening inventory Carriage on purchases Maintenance Rates Carriage on sales Wages and salaries Stationery Bad debts Sundry expenses Insurance Telephone Water and electricity Directors' fees Auditor's fees Ordinary share dividends 3 785 000 2 055 000 25 000 165 000 550 000 40 000 35 000 25 000 50 000 400 000 5 000 10 000 35 000 15 000 35 000 40 000 240 000 25 000 100 000 7 975 000 7 975 000
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS