You have recently been called on to start a set of accounting records for a small business engaged in cartage
You have recently been called on to start a set of accounting records for a small business engaged in cartage contracting. The previous set was destroyed by fire.
You established that the business, that trades under the name of Phuthuma Carriers, owns these assets at cost less depreciation to date:
• In addition, the business has R8 100 cash in the bank and receivables owe R16 400, while the business owes R70 for petrol recently bought and R1 300 for tools bought last week.
• The land and buildings have a mortgage bond with the Unlimited Building Society that currently has a balance of R41 300. A long-term loan of R20 000 was taken out three years ago and is still outstanding. Interest on the loan is 15% per annum.
• The owner, V. Zuma, tells you that she started the business three years ago by investing R30 000.
You are required to:
Prepare the statement of financial position.
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