CASESTUDY

Read the Case Study below and answer the questions that follow:

Mr Smith is the owner of a wholesale store (Conquer Wholesalers) that sells merchandise to other business. At the end of November 2019 you were presented with the following balances from the general ledger:

Vehicles Accumulated depreciation on vehicles	Dr 150 000	Cr 50 000
Inventory	100 000
Trade receivables	50 000
Bank	75 000

Capital 300 000

Trade payables 25 000

375 000 375 000

The following transactions were recorded during December 2019:

1 Inventory with a cost price of R50 000 were sold for R75 000 to ABC stores on credit.

5 Mr Smith withdraws R25 000 from the business account for personal use.

10 Stationary worth R2 000 is bought on credit from ZYX suppliers.

14 Water and electricity is paid R2 500 cash.

18 Inventory worth R50 000 is sold for R90 000 cash to various customers.

Required:

1. Prepare a post-adjustment trial balance on 31 December 2019 (show all adjustments in brackets).
2. Prepare the statement of comprehensive income for the month ended December 2019. Ignore depreciation.
3. Prepare the statement of financial position for the month ended December 2019.