Thulani Ltd has an authorised share capital of 600 000 ordinary shares. Their financial year ends on the last day of February of each year. The following pre-adjustment trial balance appeared in the books of Thulani Ltd on 28 February 2017 Pre- adjustment trial balance of Thulani Ltd on 28 February 2017 DETAILS FOL DEBIT(R) CREDIT(R) Balance Sheet Section Ordinary share capital B1 877 500.00 Retained earnings B3 64 530.00 Land and buildings B4 720 000.00 Vehicles B5 279 000.00 Accumulated depreciation: Vehicle B6 38 700.00 Trading inventory B7 106 200.00 Debtors control B8 82 000.00 Allowance for credit losses B9 2 790.00 Bank B10 285 200 SA Revenue Service ( income tax) B11 165 690 Creditors control B12 73 800.00 Mortgage loan B13 112 500.00 Nominal Account Section Sales N1 1 636 654.50 Cost of sales N2 1 043 100.00 Credit losses N3 5 674.50 Settlement discount received N4 3 915.00 Settlement discount granted N5 4 185.00 Rent income N6 108 000.00 Stationary N7 3 105.00 Credit losses recovered N8 1 845.00 Interest on mortgage loan N9 10 800.00 Sales returns N10 17 100.00 Insurance N11 6 030.00 Telephone N12 8 550.00 Water and electricity N13 12 600.00 Salaries and wages N14 126 000.00 Ordinary share dividends N15 45 000.00 2 920 234.50 2 920 234.50 Additional information 1. L. Nicol’s, a debtor who owed R5 400, is declared insolvent. The enterprise received 50c in the rand from her insolvent estate and this was recorded. Write the rest off as irrecoverable. 2. The allowance for credit losses must be maintained at 3% of good book debtors. 3. Insurance included an annual premium of R 2 700 that was paid on 1st April 2016. 4. Part of the building is let at R10 800 per month. Make provisions for the outstanding rent. 5. According to a physical stocktake, trade inventory on 28 February 2017 was valued at R103 050. 6. The water and electricity account for February 2017 has not yet been paid, R 1 152. 7. Provide for depreciation on vehicles at 20% per annum on the reducing balance method. 8. The mortgage loan is redeemable in equal annual instalments of R22 500 on 31 August each year. Interest accrues at 16% per annum. 9. A final dividend of 20 cents per share was declared on 28 February 2017. 10. The income tax for the accounting period amounts to R 202 500. 11. During the year ended 28 February 2017 and additional 100 000 ordinary shares were issued at a price of R1.875 per share. 12. On 1 March 2016, there were 440 000 ordinary shares in issue. NOTE: Ignore VAT and STC/dividends taxes Prepare the Statement of Profit or Loss and other Comprehensive Income for Thulani Ltd for the year ended 28 February 2017
Thulani Ltd has an authorised share capital of 600 000 ordinary shares. Their financial year ends on
the last day of February of each year. The following pre-adjustment
books of Thulani Ltd on 28 February 2017
Pre- adjustment trial balance of Thulani Ltd on 28 February 2017
DETAILS FOL DEBIT(R) CREDIT(R)
Balance Sheet Section
Ordinary share capital B1 877 500.00
Retained earnings B3 64 530.00
Land and buildings B4 720 000.00
Vehicles B5 279 000.00
Accumulated
Trading inventory B7 106 200.00
Debtors control B8 82 000.00
Allowance for credit losses B9 2 790.00
Bank B10 285 200
SA Revenue Service ( income tax) B11 165 690
Creditors control B12 73 800.00
Mortgage loan B13 112 500.00
Nominal Account Section
Sales N1 1 636 654.50
Cost of sales N2 1 043 100.00
Credit losses N3 5 674.50
Settlement discount received N4 3 915.00
Settlement discount granted N5 4 185.00
Rent income N6 108 000.00
Stationary N7 3 105.00
Credit losses recovered N8 1 845.00
Interest on mortgage loan N9 10 800.00
Sales returns N10 17 100.00
Insurance N11 6 030.00
Telephone N12 8 550.00
Water and electricity N13 12 600.00
Salaries and wages N14 126 000.00
Ordinary share dividends N15 45 000.00
2 920 234.50 2 920 234.50
Additional information
1. L. Nicol’s, a debtor who owed R5 400, is declared insolvent. The enterprise received 50c in
the rand from her insolvent estate and this was recorded. Write the rest off as irrecoverable.
2. The allowance for credit losses must be maintained at 3% of good book debtors.
3. Insurance included an annual premium of R 2 700 that was paid on 1st April 2016.
4. Part of the building is let at R10 800 per month. Make provisions for the outstanding rent.
5. According to a physical stocktake, trade inventory on 28 February 2017 was valued at
R103 050.
6. The water and electricity account for February 2017 has not yet been paid, R 1 152.
7. Provide for depreciation on vehicles at 20% per annum on the
8. The mortgage loan is redeemable in equal annual instalments of R22 500 on 31 August each
year. Interest accrues at 16% per annum.
9. A final dividend of 20 cents per share was declared on 28 February 2017.
10. The income tax for the accounting period amounts to R 202 500.
11. During the year ended 28 February 2017 and additional 100 000 ordinary shares were issued
at a price of R1.875 per share.
12. On 1 March 2016, there were 440 000 ordinary shares in issue.
NOTE: Ignore VAT and STC/dividends taxes
Prepare the Statement of Profit or Loss and other Comprehensive Income for Thulani Ltd for the year
ended 28 February 2017
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