(25 Marks) The following Trial Balance at 30 June 2020 was extracted from the ledger accounts...

 

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(25 Marks) The following Trial Balance at 30 June 2020 was extracted from the ledger accounts of "PP DISTRIBUTORS CC". N$ QUESTION 5 ACCOUNT DESCRIPTION Members salaries Members contribution Sales Cost of Sales Retained Earning: 01 July 2019 Interim profit Distribution: Piet : Plessis Loan to members: Plessis. Allowance for credit losses Investment: West Rand Mines (Pty) Ltd Inventories: Trade Inventories Land and Buildings Motor Vehicles Furniture Equipment Prepaid tax: NaMRA Accounts receivable Accrued expense Accumulated depreciation: Furniture Accumulated depreciation: Equipment Investment Income Long term loan: Bouland Bank Accounts Payable Bank Petty cash. Bad debts : Consumable Inventories : Packaging Material Salaries and wages Distribution costs Other operating expenses Loan from member: Piet Finance costs Additional Information:- ● ● ● DR 30 000 897 000 a. Furniture : 20% p.a on reducing balance basis b. Equipment: 10% p.a on straight line basis c. Motor Vehicles: 20% p.a on straight line basis 45 000 45 000 80 000 205 000 107 500 13 000 17 000 520 000 180 000 77 000 120 000 40 000 95 000 25 600 600 1 400 101 000 77 000 62 000 20 000 2 759 100 N$ CR 450 000 1 675 000 54 200 4 600 11 600 21 000 19 000 1. The corporation has two members, Piet and Plessis who holds equal interest. 2. At the members meeting conducted in March 2020 it was resolved that:- Members will be paid a further profit distribution of N$25 000 each at year end. Due to an increase in operations a new Motor vehicle had to be acquired. On the 01 April 2020 a vehicle with a cost price of N$180 000 was acquired. No vehicles existed prior to this acquisition. The correct entries were processed to record the purchase of the vehicle. No assets were sold off during the year. 10 300 310 000 106 500 96 900 2 759 100 8 The loan from Piet, accrues interest at a rate of 8% per annum. No fixed repayment terms were agreed upon and the loan is unsecured. Interest has not be taken into account yet. No interest will be levied on Loans to member: Plessis, as it has always been done in the past. No interest accrual will be made for the year ended 30 June 2020. Land and Buildings was revaluated for the first time this year. Jacobus Oosthuizen, a sworn valuator was appointed to value the property and he attached a value of N$740 000 at 30 June 2020. 2. Depreciation for the current year has not been accounted for. It has been the policy of the entity to depreciate assets as follows:- 3. Total taxation expense for the year was calculated to be N$67 500, but no entry has been made to record this yet. 4. A debtor with a balance of N$550 must still be written off as irrecoverable. Allowance for credit losses must be adjusted to 6% of the outstanding debtors at year end. YOU ARE REQUIRED: 1. Prepare the Statement of comprehensive income of PP Distributors for the year ended 30 June 2020. No notes are required. (13 marks) 2. Prepare the ASSETS section of the Statement of financial position at 30 June 2020. No notes are required. (12 marks) PLEASE NOTE: Grouping together of amounts count marks, therefore please show all calculations. No comparative figures are required. (25 Marks) The following Trial Balance at 30 June 2020 was extracted from the ledger accounts of "PP DISTRIBUTORS CC". N$ QUESTION 5 ACCOUNT DESCRIPTION Members salaries Members contribution Sales Cost of Sales Retained Earning: 01 July 2019 Interim profit Distribution: Piet : Plessis Loan to members: Plessis. Allowance for credit losses Investment: West Rand Mines (Pty) Ltd Inventories: Trade Inventories Land and Buildings Motor Vehicles Furniture Equipment Prepaid tax: NaMRA Accounts receivable Accrued expense Accumulated depreciation: Furniture Accumulated depreciation: Equipment Investment Income Long term loan: Bouland Bank Accounts Payable Bank Petty cash. Bad debts : Consumable Inventories : Packaging Material Salaries and wages Distribution costs Other operating expenses Loan from member: Piet Finance costs Additional Information:- ● ● ● DR 30 000 897 000 a. Furniture : 20% p.a on reducing balance basis b. Equipment: 10% p.a on straight line basis c. Motor Vehicles: 20% p.a on straight line basis 45 000 45 000 80 000 205 000 107 500 13 000 17 000 520 000 180 000 77 000 120 000 40 000 95 000 25 600 600 1 400 101 000 77 000 62 000 20 000 2 759 100 N$ CR 450 000 1 675 000 54 200 4 600 11 600 21 000 19 000 1. The corporation has two members, Piet and Plessis who holds equal interest. 2. At the members meeting conducted in March 2020 it was resolved that:- Members will be paid a further profit distribution of N$25 000 each at year end. Due to an increase in operations a new Motor vehicle had to be acquired. On the 01 April 2020 a vehicle with a cost price of N$180 000 was acquired. No vehicles existed prior to this acquisition. The correct entries were processed to record the purchase of the vehicle. No assets were sold off during the year. 10 300 310 000 106 500 96 900 2 759 100 8 The loan from Piet, accrues interest at a rate of 8% per annum. No fixed repayment terms were agreed upon and the loan is unsecured. Interest has not be taken into account yet. No interest will be levied on Loans to member: Plessis, as it has always been done in the past. No interest accrual will be made for the year ended 30 June 2020. Land and Buildings was revaluated for the first time this year. Jacobus Oosthuizen, a sworn valuator was appointed to value the property and he attached a value of N$740 000 at 30 June 2020. 2. Depreciation for the current year has not been accounted for. It has been the policy of the entity to depreciate assets as follows:- 3. Total taxation expense for the year was calculated to be N$67 500, but no entry has been made to record this yet. 4. A debtor with a balance of N$550 must still be written off as irrecoverable. Allowance for credit losses must be adjusted to 6% of the outstanding debtors at year end. YOU ARE REQUIRED: 1. Prepare the Statement of comprehensive income of PP Distributors for the year ended 30 June 2020. No notes are required. (13 marks) 2. Prepare the ASSETS section of the Statement of financial position at 30 June 2020. No notes are required. (12 marks) PLEASE NOTE: Grouping together of amounts count marks, therefore please show all calculations. No comparative figures are required.

Answer rating: 100% (QA)

Unadjusted Adjustments Adjusted ACCOUNT DESCRIPTION DR CR DR CR DR CR Members salaries 30000 30000 Members contribution 450000 450000 Sales 1675000 1675000 Cost of Sales 897000 897000 Retained Earning ... View the full answer