Complete the Statement of Comprehensive Income for the year ended 28 February 2021. Show all your workings
Question:
Complete the Statement of Comprehensive Income for the year ended 28 February 2021. Show all your workings in brackets.
INFORMATION
AMANZIMTOTI SUPPLIERS
PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2021
Debit (R) Credit (R)
Balance sheet accounts section
Capital 870 700
Drawings 234 000
Land and buildings 608 700
Vehicles at cost 275 000
Equipment at cost 203 000
Accumulated depreciation on vehicles (1 March 2020) 94 000
Accumulated depreciation on equipment (1 March 2020) 70 000
Trading inventory 140 000
Debtors control 103 000
Provision for bad debts 5 000
Bank 4 000
Cash float 1 500
Petty cash 500
Creditors control 60 000
Loan: ATM Bank (12% p.a.) 96 000
Nominal accounts section
Sales 1 277 000
Cost of sales 700 000
Sales returns 15 000
Wages 123 000
Bank charges 4 000
Rent income 66 000
Packing materials 37 000
Advertising 18 000
Rates 7 000
Bad debts 2 000
Discount allowed 1 000
Discount received 2 000
Stationery 20 000
Interest on loan 10 000
Water and electricity 9 000
Insurance 16 000
Telephone 9 000
2 540 700 2 540 700
ADJUSTMENTS AND ADDITIONAL INFORMATION
1. No entry was made for trading inventory that was taken by the proprietor for his
personal use, R2 000.
2. Inventories on 28 February 2021 according to physical stocktaking were as follows:
Trading inventory R135 000
Stationery R2 000
3. The telephone account of R1 000 for February 2021 was erroneously paid twice, on 25 February 2021 and 27 February 2021.
4. Rent has been received up to 31 January 2021.
5. A debtor, P. Peter, was declared insolvent. On 28 February 2021, his insolvent estate paid a first and final dividend of 60 cents in the Rand. An amount of R1 800 was received and recorded. The balance of his account must now be written off.
6. The provision for bad debts must be increased by R1 000.
7. The insurance total includes an amount of R7 200 that was paid for the period 01 November 2020 to 31 October 2021.
8. Interest on loan for February 2021 has not yet been paid. Interest is not capitalised.
Note: A repayment of R18 000 (excluding interest) is expected to be made in March 2021 to reduce the loan balance.
9. Depreciation must be brought into account each year as follows:
On vehicles at 20% per annum using the diminishing balance method.
On equipment at 15% per annum on cost. Note: Equipment with a cost price of R20 000 was purchased and recorded on 01 December 2020.
