Dan Steel has a plumbing business that is growing in reputation. He has 2 qualified plumbers that
Question:
Dan Steel has a plumbing business that is growing in reputation. He has 2 qualified plumbers
that work with him. He approached you to update his financial reports as he is planning to
expand his business and quoting for more work. D Steel Plumbers has a financial year-end of
31 August. The trial balance at this date is provided as follows:
Trial balance for year ended 31 August 2022;
Debit - R
Credit – R
Motor vehicles at cost - Debit 95 000
Accumulated depreciation: motor vehicles- Credit 10 000
Debtors control -Debit 11 050
Bank: ABSA- Debit 18 500
Bank: FNB- Credit 1 200
Allowance for credit loss- Credit 2 105
Equipment at cost- Debit 82 000
Accumulated depreciation: equipment- Credit 2 100
Creditors control- Credit 8 000
Accrued expenses- Credit 1 500
Capital – D Steel
34 800
Rental income- Credit 5 250
Income received in advance- Credit 3 200
Consumable expense- Debit 59 300
Water and electricity- Debit 13 200
Cleaning- Debit 4 100
Services rendered- Credit 308 000
Credit loss- Debit 7 305
Settlement discounts allowed- Debit 3 500
Salaries and wages- Debit 65 250
Printing and stationery- Debit 16 950
Additional Information: The following transactions have not been recorded:
1. A debtor was refunded R1 000 for overpayment of his account.
2. The municipality emailed the August 2022 electricity account amounting to R2 300
on 4 September 2022.
3. A Settlement discount received of R2 100 received on purchases of consumables was
posted incorrectly to the debit side of the Settlement discount allowed account.
4. Stationery of R1 750 is on hand at year-end.
5. Physical stock of consumables at 31 August 2022 was valued at R23 800.
6. Provide for depreciation for the year as follows:
Motor vehicles: R4 750; and
Equipment: R4 100.
REQUIRED:
You are required to prepare the Statement of Profit or Loss and other comprehensive income
for the year ended 31 August 2022 for D Steel Plumbers in compliance with International
Financial Reporting Standards in as much as the information allows.
Expert Answer:
