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Prepare the Statement of Financial Position as at 29 February 2024. INFORMATION The following information was obtained from the accounting records of Kingsway Suppliers on 29 February 2024, the end of the financial year. KINGSWAY SUPPLIERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2024 Debit (R) Credit (R) Balance Sheet accounts section Capital 798 850 Drawings 150 000 Vehicles at cost 990 000 Equipment at cost 460 000 Accumulated depreciation on vehicles 190 000 Accumulated depreciation on equipment 138 000 Fixed deposit: Fin Bank (12% p.a.) 40 000 Trading inventory 312 500 Debtors control 166 500 Provision for bad debts 4500 Bank 241 000 Petty cash 2500 Creditors control 78 500 Long-term loan: Fin Bank (18% p.a.) 350 000 Nominal accounts section Sales Cost of sales Sales returns Salaries and wages 3 600 000 1 550 000 45 000 700 000 Discount received Discount allowed Rent expense Motor expenses Advertising Telephone Electricity and water Bank charges Insurance Interest on mortgage loan Interest on fixed deposit 3 000 2000 180 000 58 500 48 000 42 000 52 500 24 000 31 000 47 250 2400 Consumable stores 22 500 5 165 250 5 165 250

Prepare the Statement of Financial Position as at 29 February 2024. INFORMATION The following information was obtained from the accounting records of Kingsway Suppliers on 29 February 2024, the end of the financial year. KINGSWAY SUPPLIERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2024 Debit (R) Credit (R) Balance Sheet accounts section Capital 798 850 Drawings 150 000 Vehicles at cost 990 000 Equipment at cost 460 000 Accumulated depreciation on vehicles 190 000 Accumulated depreciation on equipment 138 000 Fixed deposit: Fin Bank (12% p.a.) 40 000 Trading inventory 312 500 Debtors control 166 500 Provision for bad debts 4500 Bank 241 000 Petty cash 2500 Creditors control 78 500 Long-term loan: Fin Bank (18% p.a.) 350 000 Nominal accounts section Sales Cost of sales Sales returns Salaries and wages 3 600 000 1 550 000 45 000 700 000 Discount received Discount allowed Rent expense Motor expenses Advertising Telephone Electricity and water Bank charges Insurance Interest on mortgage loan Interest on fixed deposit 3 000 2000 180 000 58 500 48 000 42 000 52 500 24 000 31 000 47 250 2400 Consumable stores 22 500 5 165 250 5 165 250

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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Adjustments and additional information
 
1. Inventories, cost price R6 000, were donated to a local charity on 26 February 2024. No entry was
made for this.
2. According to stocktaking at the end of the financial year, the following were on hand:
Trading inventory R296 500
Consumable stores R1 500
3. Interest of R15 750 is due on the long-term loan. nterest is not capitalised. Repayments to be made during the next financial period are expected to reduce the loan balance by R100 000.
4. Provide for interest not yet received on the fixed deposit. The investment in fixed deposit was made on 28 February 2023 and it matures on 30 June 2024. Interest is not capitalised.
5. In terms of the rental agreement the rent expense for the first ten months of the financial year was R16 000 per month. Thereafter, the monthly rental increased by R4 000
6. The advertising total includes a payment of R3 600 for an advertisement that was due to appear in March 2024.
7. The telephone account for February 2024 was due to be paid on 02 March 2024, R3 900
8. The bank statement from Fin Bank reflected bank charges that must still be recorded, R2 150.
9. The insurance total includes a payment made for the proprietor's personal life insurance, R3 500.
10. An account of R4 500 was received from Hooper Tyres to replace the tyres of one of the vehicles,. No entry was made for this. Note: Do not treat this as accrued expenses
11. The account of a debtor, P. Thomas, must be written off as irrecoverable, R6 500.
12. The provision for bad debts must be increased by R3 500.
13. Provide for depreciation as follows: On vehicles at 15% per annum on cost.
                                                               On equipment at 20% per annum using the diminishing balance method,
14. The net profit, after taking all the information provided above into account, amounted to R528 450.
 
How to prepare the Statement of Financial statement as at 29 february 2024
Prepare the Statement of Financial Position as at 29 February 2024. INFORMATION The following information was obtained from the accounting records of Kingsway Suppliers on 29 February 2024, the end of the financial year. KINGSWAY SUPPLIERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2024 Debit (R) Credit (R) Balance Sheet accounts section Capital 798 850 Drawings 150 000 Vehicles at cost 990 000 Equipment at cost 460 000 Accumulated depreciation on vehicles 190 000 Accumulated depreciation on equipment 138 000 Fixed deposit: Fin Bank (12% p.a.) 40 000 Trading inventory 312 500 Debtors control 166 500 Provision for bad debts 4500 Bank 241 000 Petty cash 2500 Creditors control 78 500 Long-term loan: Fin Bank (18% p.a.) 350 000 Nominal accounts section Sales Cost of sales Sales returns Salaries and wages 3 600 000 1 550 000 45 000 700 000 Discount received Discount allowed Rent expense Motor expenses Advertising Telephone Electricity and water Bank charges Insurance Interest on mortgage loan Interest on fixed deposit 3 000 2000 180 000 58 500 48 000 42 000 52 500 24 000 31 000 47 250 2400 Consumable stores 22 500 5 165 250 5 165 250
Transcribed Image Text:Prepare the Statement of Financial Position as at 29 February 2024. INFORMATION The following information was obtained from the accounting records of Kingsway Suppliers on 29 February 2024, the end of the financial year. KINGSWAY SUPPLIERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2024 Debit (R) Credit (R) Balance Sheet accounts section Capital 798 850 Drawings 150 000 Vehicles at cost 990 000 Equipment at cost 460 000 Accumulated depreciation on vehicles 190 000 Accumulated depreciation on equipment 138 000 Fixed deposit: Fin Bank (12% p.a.) 40 000 Trading inventory 312 500 Debtors control 166 500 Provision for bad debts 4500 Bank 241 000 Petty cash 2500 Creditors control 78 500 Long-term loan: Fin Bank (18% p.a.) 350 000 Nominal accounts section Sales Cost of sales Sales returns Salaries and wages 3 600 000 1 550 000 45 000 700 000 Discount received Discount allowed Rent expense Motor expenses Advertising Telephone Electricity and water Bank charges Insurance Interest on mortgage loan Interest on fixed deposit 3 000 2000 180 000 58 500 48 000 42 000 52 500 24 000 31 000 47 250 2400 Consumable stores 22 500 5 165 250 5 165 250
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