Q.2.1 Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 2021 Prepare the statement of financial position as at 28 February 2021 Round off to the nearest Rand Ignore VAT The following Pre-adjustment Trial Balance was taken from the books of Jakarta Traders for theyear-ended 28 February 2021FolDEBITCREDITStatement of financial position sectionСаpital939 540Drawings16 000Land and buildings1100 000Vehicles480 000Accumulated depreciation: Vehicles120 000Fixed Deposit ABC Bank85 700Trading inventory42 740Petty cash2 000Bank8 920Debtors Control27 820Allowance for credit losses2 000Creditors Control12 140Long-term loan: XYZ Bank744 000Nominal accounts sectionSales1236 000Sales returns36 000Cost of sales976 000Rent income52 000Interest on fixed deposit7 840Telephone76 080Interest on long term loan119 040Salaries and wages43 320Advertising18 000Postage and stationery9 500Insurance80 000Credit losses10 2403122 4403 122 440 Additional information:According to a physical stock-take the following was on hand on 28 February 2021:Trading inventory R42 000Pastage and stationery R2 000Depreciation must be written off on vehides at 25% per annum according to thediminishing balance method. No vehicles were purchased or sold during the currentEinancial yearSalaries and wages for February have not yet been paid, R16 000Advertising for March has been prepaid R3 600Rent for March was received in February R4 000Interest on fixed deposit accrued R1 000Allowance for credit losses must be increased by 10% of the allowance

A profit and loss statement sums up a company's sales, costs, and profits or losses. This report…

Answered: yearended 28 February 2021 Fol DEBIT…

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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Q.2.1

Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 2021

Prepare the statement of financial position as at 28 February 2021

Round off to the nearest Rand

Ignore VAT

The following Pre-adjustment Trial Balance was taken from the books of Jakarta Traders for the
year-ended 28 February 2021
Fol
DEBIT
CREDIT
Statement of financial position section
Саpital
939 540
Drawings
16 000
Land and buildings
1100 000
Vehicles
480 000
Accumulated depreciation: Vehicles
120 000
Fixed Deposit ABC Bank
85 700
Trading inventory
42 740
Petty cash
2 000
Bank
8 920
Debtors Control
27 820
Allowance for credit losses
2 000
Creditors Control
12 140
Long-term loan: XYZ Bank
744 000
Nominal accounts section
Sales
1236 000
Sales returns
36 000
Cost of sales
976 000
Rent income
52 000
Interest on fixed deposit
7 840
Telephone
76 080
Interest on long term loan
119 040
Salaries and wages
43 320
Advertising
18 000
Postage and stationery
9 500
Insurance
80 000
Credit losses
10 240
3122 440
3 122 440

Additional information:
According to a physical stock-take the following was on hand on 28 February 2021:
Trading inventory R42 000
Pastage and stationery R2 000
Depreciation must be written off on vehides at 25% per annum according to the
diminishing balance method. No vehicles were purchased or sold during the current
Einancial year
Salaries and wages for February have not yet been paid, R16 000
Advertising for March has been prepaid R3 600
Rent for March was received in February R4 000
Interest on fixed deposit accrued R1 000
Allowance for credit losses must be increased by 10% of the allowance

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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