Adjustments

1. Physical stock taking showed inventory valued at R180 000 as at 31 December 2017

2. Depreciation must be provided for as follows

    • Motor vehicles: 20% per annum on the cost price

    •  Machinery: 15% per annum on reducing balance method

3. The loan from VBS Bank was acquired on 31 December 2016, and the interest was payable at the end of six months at 15% per annum. No interest has been paid as yet. 4. An amount of R2 000 has to be written-off as the debtor become insolvent

5. An insurance amount of R300 had been paid in advance for the month of January 2018.

Required:

Prepare the Statement of Comprehensive Income for the year ended 31 December 2017 (10 marks)

 Prepare the Statement of Financial Position as at 31 December 2017 (10 marks) a. b. 2

Transcribed Image Text:

The following information was extracted from the books of Bantu Traders on 31 December 2017 Debit Credit 2 500 000 Sales Purchases Carriage on purchases Sales returns Inventory (01/01/17) Loan from VBS Bank Bank Investment in Bantu Bank Accounts receivable Accounts payable Motor vehicles at cost Machinery at cost Accumulated depreciation on motor vehicles Accumulated depreciation on machinery Salaries and wages Printing and stationery 1 536 000 42 000 5 500 100 000 43 000 150 000 52 000 1 000 000 400 000 156 000 38 000 200 000 41 000 360 000 80 000 The following information was extracted from the books of Bantu Traders on 31 December 2017 Debit Credit 2 500 000 Sales Purchases Carriage on purchases Sales returns Inventory (01/01/17) Loan from VBS Bank Bank Investment in Bantu Bank Accounts receivable Accounts payable Motor vehicles at cost Machinery at cost Accumulated depreciation on motor vehicles Accumulated depreciation on machinery Salaries and wages Printing and stationery 1 536 000 42 000 5 500 100 000 43 000 150 000 52 000 1 000 000 400 000 156 000 38 000 200 000 41 000 360 000 80 000

Answer rating: 100% (QA)

Bantu Traders Statement of Comprehensive Income For the year ended 31 December 2017 Revenue Sales 2500000 Commission received 1800 Interest received f... View the full answer