CASE STUDY SCENARIO

You are provided with the pre$-$adjustment trial balance of XYZ Limited is presented as

follows:

Additional information:

A customer returned defective goods of R$5750.$ VAT of $15\%$ is levied per the Value

Added Tax Act by XYZ Limited. The company has a $10\%$ markup rate.

The municipal account amounting to R$1450$ was received on $14$ April $2023.$

Repairs to the motor vehicle of $R3200$ was refunded through payroll and posted to

the salaries and wages account.XYZ Trading adopted the periodic inventory system to account for the consumables.

Consumables purchased during March $2023$ of R$5000$ was posted to the cost of

sales account by the bookkeeper. The stock count concluded on $31$ March $2023$

valued the consumable inventory on R$4200.$

Ordinary shares trades at R$2$ each. At reporting date, the shareholders declared a

dividend of $5$ c $.$ A prospectus offering $50000$ R$2$ ordinary shares and $10000$ R$10$

preference shares was advertised during March $2023.$ Mrs$.$ Flinch entered into an

underwriter's agreement with XYZ Limited for an agreed $3,5\%$ fee.

The allowance for credit losses should equal $8\%$ of the debtor's book at reporting

date.

Use the information provided and:

Prepare general journal entries to record the additional information as at $31$ March $2023.$

Prepare:

Trial Balance

The Statement of Financial Position as at $31$ March $2023$ based on the reporting

requirements of the International Financial Reporting Standards.