$2/10$

$100\%$

Answer ALL the questions.

$[100$ MARKS$]$

QUESTION $1$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Financial Position as at $28$ February $2025.$

INFORMATION

The trial balance, adjustments and additional information given below were obtained from the records of Zappin Traders on $28$ February $2025,$ the end of the financial year.

$\backslash$table$[[$ZAPPIN TRADERS$],[$PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $28$ FEBRUARY $2025],[,$Debit $($R$),$Credit $($R$)],[$Balance Sheet accounts section,,$],[$Capital$,,1240000],[$Drawings$,98000,],[$Land and buildings,$910000,],[$Vehicles at cost$,670000,],[$Equipment at cost$,480000,],[$Accumulated depreciation on vehicles,,$387000],[$Accumulated depreciation on equipment,,$168000],[$Fixed deposit: Rio Bank $(6\%$ p$.$a$.),140000,],[$Trading inventory,$125000,]]$

$\backslash$table$[[$Debtors control,$132000,],[$Provision for bad debts,,$7000],[$Bank$,64000,],[$Cash float,$7000,],[$Creditors control,,$130000],[$Mortgage loan: Rio Bank $(12\%$ p$.$a$.),,300000],[$Nominal accounts section,,$],[$Sales$,,1510000],[$Cost of sales,$430000,],[$Sales returns,$9000,],[$Salaries and wages,$429000,],[$Bad debts,$13000,]]$

$\backslash$table$[[$Stationery$,21000,],[$Rates and taxes,$57000,],[$Motor expenses,$96000,],[$Repairs to building,$17000,],[$Telephone$,32000,],[$Electricity and water,$48000,],[$Bank charges,$6000,],[$Insurance$,62000,],[$Interest on mortgage loan,$33000,],[$Interest on fixed deposit,,$7000],[$Rent income,,$130000],[,3879000,3879000]]$

Adjustments and additional information

The electricity and water account for February $2025,$ R$5000,$ was due to be paid on $02$ March $2025.$

A debtor was declared insolvent. His insolvent estate paid $40\%$ of his debt of R$1000$ and this has been recorded. The balance of his account must now be written off.

Stocktaking on $28$ February $2025$ revealed the following inventories:

Trading inventory R$122000$

$.2$ Stationery R$1000.$

The provision for bad debts must be decreased to R$6500.$

Rent has been received up to $31$ March $2025.$

$20$and$\%20$Analysis$\%20$Supplementary$\%20$OSA$\%20(3).$pdf

$3/10$

$100\%$

$5.$ Rent has been received up to $31$ March $2025.$

$6.$ The insurance total includes an amount of R$2250$ that was paid for the next financial year.

$7.$ Provide for the outstanding interest on the mortgage loan for February $2025.$ Repayments during the next financial year are expected to reduce the loan balance by R$30000.$ Interest in not capitalised.

$8.$ Provide for the outstanding interest on fixed deposit, R$1400.$ The fixed deposit matures on $28$ February $2027.$ Interest is not capitalised.

$9.$ The credit purchase of tyres for a motor vehicle has not been recorded, R$4000.($Note: Do not treat this as accrued expenses$/$expenses payable.$)$

$10.$ Provide for depreciation as follows:

$10\mathrm{.}1$ On equipment at $10\%$ p$.$a$.$ on cost$.$

$10\mathrm{.}2$ On vehicles, R$56600.$

$11.$ The net profit for the year ended $28$ February $2025$ was R$268950$ after taking the above into account.