10.2.3 ACCOUNTING 1: ASSIGNMENT 2QUESTION ONESamke Limited sells new equipment and repairs equipment for their regular customers.The following information was extracted from the accounting records for the financialyear ended 30 June 20211. Extracted from the Pre-Adjustment Trial Balance at 30 June 2021:RFixed depositInventory: Trade goodsDebtors controlMachineryAccumulated depreciation: MachineryLong term borrowing: FinhouseSalesDebtors allowancesCost of salesService fee income (in respect of repair services)Rent incomeInterest incomeSalaries and wagesAudit feesDirectors feesConsumable storesBank chargesTravel and entertainment - Directors2.2.12.22.4auditors are owed a further R28 000 in audit fees.Bank charges of R310 reflected on the June 2021 bank statement have notyet 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; R9002.5Adjustments and additional information:The internal auditors have identified the following errors or omissions:160 000219 80039 090224 000130 000The tenant paid the July and August rent in June 2021. The rent wasincreased by R700 per month on 1 January 2021.Provide for depreciation on machinery at 10% p.a. on the diminishing-balancemethod. Note that new machinery costing R30 000 was purchased on 31December 2020, (this was recorded correctly).2.6 Interest on the loan was capitalised. The loan statement from Finhouse on30 June 2021 reflects the following:281 2001 680 00017 0001 050 000297 140105 00011 200294 64030 000230 00051 1005 24015 910FINHOUSELoan statement at 30 June 2021Balance on 1 July 2020Interest chargedMonthly instalments of R4 300 x 12 paidBalance on 30 June 2021[100][20]R332 800?R 51 600R326 000The 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 recordedin the books. The credit note was for price reduction on unsatisfactory repair of apiece of equipment, R540.Required:Prepare a Statement of profit or loss and other comprehensive income for the yearended 30 June 2021 in compliance with International Financial Reporting Standardsappropriate to Samke Ltd's business activities.(20)

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Answered: Samke Limited sells new equipment and…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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