The following balances appeared in the records of Bulk Traders, a general dealer trading in Windhoek...
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The following balances appeared in the records of Bulk Traders, a general dealer trading in Windhoek CBD on 28th February 2022: Equipment at cost price Vehicles at cost price Accumulated depreciation - Equipment (01 March 2021) Accumulated depreciation - Vehicle (01 March 2021) Inventory (01 March 2021) Debtors (Accounts Receivable) Provision (Allowance) for bad debts Cash in Bank Capital contribution Drawings Creditors (Accounts Payable) Purchases Purchases returns Salaries and wages Rent expense Advertising Insurance Electricity Sundry expenses Sales Sales returns iii. iv. The following additional information is provided: i. ii. V. N$ 3 000 12 000 1 500 5 856 61 200 13 000 400 30 000 78 000 24 000 41 000 157 000 5 044 11 440 3 480 1 200 960 1 280 240 190 000 3 000 Inventory on hand on 28 February 2022, was valued at N$ 80,000. Depreciation for the year is to be accounted for as follows: a. - Equipment, 5% per annum on cost using straight line method b. - Vehicles, 20% per annum on reducing balance method Insurance prepaid as at 28 February 2022, amounts to N$ 160. The Provision (Allowance) for bad debts balance at year end should be N$ 1,000 in total. Rent of N$ 1,000 for the period 01 September 2021 to 28 February 2022 has not been paid and this has not been recorded in the books. Required: a. Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 2022, and (12 marks) b. A Statement of Financial Position as at 28 February 2022. (13 marks) The following balances appeared in the records of Bulk Traders, a general dealer trading in Windhoek CBD on 28th February 2022: Equipment at cost price Vehicles at cost price Accumulated depreciation - Equipment (01 March 2021) Accumulated depreciation - Vehicle (01 March 2021) Inventory (01 March 2021) Debtors (Accounts Receivable) Provision (Allowance) for bad debts Cash in Bank Capital contribution Drawings Creditors (Accounts Payable) Purchases Purchases returns Salaries and wages Rent expense Advertising Insurance Electricity Sundry expenses Sales Sales returns iii. iv. The following additional information is provided: i. ii. V. N$ 3 000 12 000 1 500 5 856 61 200 13 000 400 30 000 78 000 24 000 41 000 157 000 5 044 11 440 3 480 1 200 960 1 280 240 190 000 3 000 Inventory on hand on 28 February 2022, was valued at N$ 80,000. Depreciation for the year is to be accounted for as follows: a. - Equipment, 5% per annum on cost using straight line method b. - Vehicles, 20% per annum on reducing balance method Insurance prepaid as at 28 February 2022, amounts to N$ 160. The Provision (Allowance) for bad debts balance at year end should be N$ 1,000 in total. Rent of N$ 1,000 for the period 01 September 2021 to 28 February 2022 has not been paid and this has not been recorded in the books. Required: a. Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 2022, and (12 marks) b. A Statement of Financial Position as at 28 February 2022. (13 marks)
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Related Book For
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th Edition
Authors: Gerald E. Whittenburg, Steven Gill
Posted Date:
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