QUESTION $1$

$(20$ Marks$)$

The trial balance and additional information given below were extracted from the accounting records of Dysan Limited on $29$ February $2020,$ the end of the financial year.

REQUIRED

Prepare the Statement of Financial Position as at $29$ February $2020.$ The notes to the financial statements are not required. Show workings in brackets.

INFORMATION

DYSAN LIMITED

PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $29$ FEBRUARY $2020$

$\backslash$table$[[,$Debit $($R$),$Credit $($R$)],[$Balance sheet accounts section,,$],[$Ordinary share capital $(100000$ shares$),,200000],[$Retained earnings,$180000,62000],[$Vehicles at cost$,120000,],[$Equipment at cost$,,90000],[$Accumulated depreciation on vehicles,,$38000],[$Accumulated depreciation on equipment,$70000,],[$Trading inventory,$32000,],[$Debtors control,,$4000],[$Provision for bad debts,$182000,],[$Bank$,2000,],[$Cash float,,$40000],[$Creditors control,$10000,],[$South African Revenue Services: Company tax,,$80000],[$Long$-$term loan: Aries Bank $(16\%$ p$.$a$.),,],[$Nominal accounts section,$240000,],[$Sales$,5000,],[$Cost of sales,$84000,],[$Sales returns,$5000,],[$Salaries and wages,$2000,],[$Bad debts,$28000,],[$Consumable stores,$15000,],[$Rent expense,,$],[$Motor expenses,$7000,],[$Bad debts recovered,$11000,],[$Telephone$,3000,],[$Electricity and water,$4000,],[$Bank charges,$6000,],[$Insurance$,,5000],[$Interest on mortgage loan,$1006000,1006000],[$Commission income,,$],[,,],[,,]]$

Adjustments and additional information

According to physical stocktaking done on $29$ February $2020,$ trading inventory on hand amounted to R$68000.$

Consumable stores unused according to stocktaking amounted to R$200$ on $29$ February $2020.$

No entry has been made for a commission of $10\%$ earned but not received on $500$ items that were sold for R$60$ each.

Received a cheque for R$600$ from an insolvent debtor, J$.$ Marsh, who was only able to pay $30\%$ of her debt. The balance of her account must now be written off. No entries were made for these transactions.

The provision for bad debts must be decreased to R$1500.$

The telephone account for February $2020$ was due to be paid on $02$ March $2020,$ R$700.$

The rental agreements signed with the lessor $($landlord$)$ are as follows: R$30000$ for the period $01$ January $2019$ to $31$ December $2019,$ and R$36000$ for the period $01$ January $2020$ to $31$ December $2020.$

Make the necessary adjustment.

The loan from Aries Bank was obtained on $01$ September $2019.$ Provide for the outstanding interest. $($Interest is not capitalised.$)$ Loan repayments $($excluding interest$)$ are expected to amount to R$12000$ in the next financial year.

The insurance total includes an annual premium of R$1800$ that was paid for the period $01$ June $2019$ to $31$ May $2020.$

The bank statement for February $2020$ reflected bank charges of R$180$ that have not yet been recorded.

The electricity and water statement for February $2020$ included an amount of R$1000$ for a deposit required by the municipality. This was recorded in the water and electricity account.

Provide for depreciation as follows:

$12\mathrm{.}1$ On equipment at $15\%$ per annum on cost$.$

$12\mathrm{.}2$ On vehicles at $25\%$ per annum on the diminishing balance.

An account received from Heidi Motors to replace two tyres on the delivery vehicle of the business, R$2000,$ has not been recorded.

Company tax for the financial year amounted to R$11691.$

The directors proposed a final dividend of $18$ cents per share.

The profit after tax for the year ended $29$ February $2020,$ after taking the above adjustments into account, was R$27279.$