The statement of financial position of a retail trading company was presented to you by an inexperienced bookkeeper:

Additional information:

1. All the shares have been issued.

2. Accounts receivable of R10 000 were deposited at the bank on 29 June 20x1. The transaction was correctly recorded in the accounting records.

3. According to the Memorandum of Incorporation (MoI), the capital profits may not be distributed by way of dividends.

* This statement of financial position is drafted in the T-format (or horizontal format) that was used before the new format (vertical format) was prescribed by the accounting standards.

You are required to:

Redraft the above statement of financial position in vertical form for internal use.

Transcribed Image Text:

STATEMENT OF FINANCIAL Liabilities Ordinary share capital Capital profits - sale of fixed assets Profit after income tax Depreciation plant Depreciation furniture 7% secured loan (repayable on 30 June 20x9) Accounts payable (including dividends declared of R10 000) Naidoo (Pty) Ltd* POSITION FOR THE YEAR ENDED 30 JUNE 20x1 Assets 150 000 10 000 25 000 25 000 2 000 Inventory at cost Cost of plant Cost of furniture Accounts receivable Bank 40 000 Financial asset 80 000 332 000 110 000 100 000 10 000 82 000 20 000 10.000 332 000