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Tolowing Wamor Tradem year ende 2021

Tolowing Wamor Tradem year ende 2021

FINANCIAL ACCOUNTING
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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Adjustments and additional Information: 1. According to physical stocktaking done on 28 February 2021, trading Inventory on hand amounted to R68 00. 2. Consumable stores used during the financial year amounted to R1 800. 3. No entry has been made for a commission of 10% eamed bit not recelved on 500 Items that were sold for R50 each. 4. Recelved a cheque for RE00 from an Insolvent debtor, J Marsh, who was only able to pay 30% of her debt. The balance of his account must now be wrtten off. 5. The provision for bad debts must be decreased to R1 500. 6. The telephone account for February 2021 has not yet been paid, R700. 7. The rental agreements signed with the lessor were as follows: • R30 000 for the perlod 01 January 2020 to 31 December 2020 • R35 C00 for the perlod 01 January 2021 to 31 December 2021 8. The loan trom Arles Bank was obtalned on 01 September 2020. Provide for the outstanding interest. 9. The Insurance total indudes an annual premlum of R1 800 that was paid for the perod 01 June 2020 to 31 May 2021. 10. The bank statement for February 2021 reflected bank charges of R180 that have not yet been recorded. 11. The electricity and water account was debited with an amount of R1 000 for personal electricity account of the proprietor, that was pald with a business cheque 12. Provide for depreclation as follows: • On equipment at 15% per annum on cost • On vehicies at 25% per annum on the diminishing balance method 13. An account recelved from Heldi Motors to replace two tyres on the dellvery vehlcle of the business R2 000, has not been recorded. Requlred: Prepare the following for Warrior Traders for the financial year ended 28 February 2021 3.2 The statement of changes in equity.
Transcribed Image Text:Adjustments and additional Information: 1. According to physical stocktaking done on 28 February 2021, trading Inventory on hand amounted to R68 00. 2. Consumable stores used during the financial year amounted to R1 800. 3. No entry has been made for a commission of 10% eamed bit not recelved on 500 Items that were sold for R50 each. 4. Recelved a cheque for RE00 from an Insolvent debtor, J Marsh, who was only able to pay 30% of her debt. The balance of his account must now be wrtten off. 5. The provision for bad debts must be decreased to R1 500. 6. The telephone account for February 2021 has not yet been paid, R700. 7. The rental agreements signed with the lessor were as follows: • R30 000 for the perlod 01 January 2020 to 31 December 2020 • R35 C00 for the perlod 01 January 2021 to 31 December 2021 8. The loan trom Arles Bank was obtalned on 01 September 2020. Provide for the outstanding interest. 9. The Insurance total indudes an annual premlum of R1 800 that was paid for the perod 01 June 2020 to 31 May 2021. 10. The bank statement for February 2021 reflected bank charges of R180 that have not yet been recorded. 11. The electricity and water account was debited with an amount of R1 000 for personal electricity account of the proprietor, that was pald with a business cheque 12. Provide for depreclation as follows: • On equipment at 15% per annum on cost • On vehicies at 25% per annum on the diminishing balance method 13. An account recelved from Heldi Motors to replace two tyres on the dellvery vehlcle of the business R2 000, has not been recorded. Requlred: Prepare the following for Warrior Traders for the financial year ended 28 February 2021 3.2 The statement of changes in equity.
The trial balance and addtional Information given below were extracted from the accounting records of Warrlor Traders as at 28 February 2021, the end of the financal year. Warrlor Traders Pre-adjusted trial balance on 28 February 2021 Debit (R) Credit (R) 162 000 Capital Drawings 70 000 Vehicles at oost 180 000 Equipment at cost 120 000 Accumulated depredation on vehicles 90 000 Accumulated depredation on equipment 38 000 Trading Inventory 70000 Debtors control 32 000 Provision for bad debts 4 000 Bank 22 000 Cash float 2000 Creditors control 40 000 Mortgage loan: Aries Bank (16% p.a) 80 000 Sales 485 000 Cost of sales 240 000 Sales retums 5 000 Salarles and wages 84 000 Bad debts 5 000 Consumable stores 2000 Rent expense Motor expenses 28 000 15 000 Bad debts recovered 2 000 Telephone 7 000 Electricity and water 11 000 Bank charges 3 000 Insurance 4 000 Interest on mortgage loan 6 000 Commission Income 5 000 906 000 906 000
Transcribed Image Text:The trial balance and addtional Information given below were extracted from the accounting records of Warrlor Traders as at 28 February 2021, the end of the financal year. Warrlor Traders Pre-adjusted trial balance on 28 February 2021 Debit (R) Credit (R) 162 000 Capital Drawings 70 000 Vehicles at oost 180 000 Equipment at cost 120 000 Accumulated depredation on vehicles 90 000 Accumulated depredation on equipment 38 000 Trading Inventory 70000 Debtors control 32 000 Provision for bad debts 4 000 Bank 22 000 Cash float 2000 Creditors control 40 000 Mortgage loan: Aries Bank (16% p.a) 80 000 Sales 485 000 Cost of sales 240 000 Sales retums 5 000 Salarles and wages 84 000 Bad debts 5 000 Consumable stores 2000 Rent expense Motor expenses 28 000 15 000 Bad debts recovered 2 000 Telephone 7 000 Electricity and water 11 000 Bank charges 3 000 Insurance 4 000 Interest on mortgage loan 6 000 Commission Income 5 000 906 000 906 000
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