Answer ALL questions.

$[100$ MARKS$]$

QUESTION $1$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Financial Position as at $29$ February $2024.$

INFORMATION

The following information was obtained from the accounting records of Kingsway Suppliers on $29$ February $2024,$ the end of the financial year.

KINGSWAY SUPPLIERS PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $29$ FEBRUARY $2024$ Debit $($R$)$ Credit $($R$)$ Balance Sheet accounts section Capital $798850$ Drawings $150000$ Vehicles at cost $990000$ Equipment at cost $460000$ Accumulated depreciation on vehicles $190000$ Accumulated depreciation on equipment $138000$ Fixed deposit: Fin Bank $(12\%$ p$.$a$.)40000$ Trading inventory $312500$ Debtors control $166500$ Provision for bad debts $4500$ Bank $241000$ Petty cash $2500$ Creditors control $78500$ Long$-$term loan: Fin Bank $(18\%$ p$.$a$.)350000$ Nominal accounts section Sales $3600000$ Cost of sales $1550000$ Sales returns $45000$ Salaries and wages $700000$ Discount received $3000$ Discount allowed $2000$ Rent expense $180000$ Motor expenses $58500$ Advertising $48000$ Telephone $42000$ Electricity and water $52500$ Bank charges $24000$ Insurance $31000$ Interest on mortgage loan $47250$ Interest on fixed deposit $2400$ Consumable stores $2250051652505165250$

Adjustments and additional information

$1.$

Inventories, cost price R$6000,$ were donated to a local charity on $26$ February $2024.$ No entry was made for this.

$2.$

According to stocktaking at the end of the financial year, the following were on hand:

Trading inventory

R$296500$

Consumable stores

R$1500.$

$3.$

Interest of R$15750$ is due on the long$-$term loan. Interest is not capitalised. Repayments to be made during the next financial period are expected to reduce the loan balance by R$100000.$

$4.$

Provide for interest not yet received on the fixed deposit. The investment in fixed deposit was made on $28$ February $2023$ and it matures on $30$ June $2024.$ Interest is not capitalised.

$5.$

In terms of the rental agreement the rent expense for the first ten months of the financial year was R$16000$ per month. Thereafter, the monthly rental increased by R$4000.$

$6.$

The advertising total includes a payment of R$3600$ for an advertisement that was due to appear in March $2024.$

$7.$

The telephone account for February $2024$ was due to be paid on $02$ March $2024,$ R$3900.$

$8.$

The bank statement from Fin Bank reflected bank charges that must still be recorded, R$2150.$

$9.$

The insurance total includes a payment made for the proprietor$$s personal life insurance, R$3500.$

$10.$

An account of R$4500$ was received from Hooper Tyres to replace the tyres of one of the vehicles. No entry was made for this. Note: Do not treat this as accrued expenses.

$11.$

The account of a debtor, P$.$ Thomas, must be written off as irrecoverable, R$6500.$

$12.$

The provision for bad debts must be increased by R$3500.$

$13.$

Provide for depreciation as follows:

$13\mathrm{.}1$

On vehicles at $15\%$ per annum on cost$.$

$13\mathrm{.}2$

On equipment at $20\%$ per annum using the diminishing balance method.

$14.$

The net profit, after taking all the information provided above into account, amounted to R$528450.$