Here is the pre-adjustment trial balance of Tsepo Ltd as at 31 March 20x4:

This additional information relates to the trial balance:

1. The plant and machinery were bought on 1 April 20x0.

– A machine that cost R13 580 has been debited to selling and operating expenses.

– The machine was bought on 1 October 20x3.

– Depreciation is written off at 10% per annum on a straight-line basis.

2. The vehicles were bought on 1 April 20x0.

– A vehicle that cost R17 780 was disposed of on 1 October 20x3.

– No purchases took place during the year.

– Depreciation is written off at 20% per annum on a straight-line basis.

3. Inventories on 31 March 20x4 consist of:

4. Allowance for bad debts is to be maintained at 10% of accounts receivable.

5. Income tax:

A provision of R39 349 is to be made for the current year.

6. During the year the company had R150 000 on deposit with a bank. Interest received of R6 690 has been credited to sales.

7. A dividend of 5c/share is to be provided for. (Ignore any dividend tax implications.)

You are required to:

1. Journalise the entries to correct the financial statements. (Narrations are not required.)

2. Prepare the statement of profit or loss & other comprehensive income of Tsepo Ltd for the year ended 31 March 20x4.

3. Prepare the statement of financial position as at 31 March 20x4.

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Tsepo Ltd PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 MARCH 20x4 Debit Ordinary shares capital (200 000 shares) Redeemable preference shares (20 000 shares) (fixed annual dividend of 7c/share) Asset replacement reserve Retained earnings (1 April 20x3) Surplus on revaluation of land 11% secured debentures @ R100 each (issued 1 October 20x3) Land and buildings Plant and machinery (1 April 20x3): at cost accumulated depreciation. Vehicles (1 April 20x3): at cost accumulated depreciation Debenture discount (Tip: deduct from debentures in statement of financial position) Investments Provisional tax payments for 20x4 Inventories (1 April 20x3) Accounts receivable Allowance for bad debts Accounts payable Bank overdraft 385 000 00 232 570 00 83 780 00 27 500 00 48 500 00 12 500 00 00 00 122 540 112 380 Credit 220 000 00 20 000 00 105 000 00 112 750 00 50 000 00 150 000 00 69 771 00 50 268 00 12 500 00 44 295 00 27 690 00