QUESTION $2$

$(20$ MARKS$)$

REQUIRED

Use the information provided below to prepare the Statement of Financial Position of Trent Limited as at $31$ July $2023.$ The notes to the financial statements are not required.

INFORMATION

TRENT LTD

Extract of PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $31$ JULY $2023$

Balance Sheet Accounts Section

Debit $($R$)$

Credit $($R$)$

Ordinary share capital $(200000$ shares$)$

$4000000$

Retained earnings

$589200$

Land and buildings

$3904100$

Vehicles $($cost$)$

$1400000$

Equipment $($cost$)$

$900000$

Accumulated depreciation on vehicles

$510000$

Accumulated depreciation on equipment

$397000$

Debentures $(12\%$ p$.$a$.$; Maturity date $31$ July $2028)$

$1700000$

Investment $(25000$ shares in ABC Limited$)$

$500000$

Trading inventory

$1090000$

Debtors control

$360000$

Provision for bad debts

$30000$

Bank

$287000$

Creditors control

$484000$

South African Revenue Services: Company tax

$140000$

Adjustments and additional information

The profit after tax for the year ended $31$ July $2023$ amounted to R$392100.$ The following adjustments were made to the income and expenses but not to the balance sheet accounts:

$1.$

A physical stocktake on $31$ July $2023$ revealed the following:

$1\mathrm{.}1$

Trading inventory on hand amounted to R$1050000.$

$1\mathrm{.}2$

Stationery unused amounted to R$2000.$

$2.$

Rent for August $2023$ was received and recorded on $31$ July $2023,$ R$14000.$

$3.$

Dividends of $70$ cents per share are due from ABC Limited.

$4.$

Commission on sales of R$30000$ is owed to the salespersons.

$5.$

Equipment, cost price R$120000,$ was purchased on credit on $01$ July $2023$ but no entry has been made for this. Depreciation on equipment is calculated at $15\%$ p$.$a$.$ on cost and on vehicles at $20\%$ p$.$a$.$ on the diminishing balance.

$6.$

The bank statement was received after the trial balance was prepared and it reflected bank charges of R$1800.$

$7.$

The provision for bad debts must be adjusted to $5\%$ of debtors.

$8.$

Two of the directors of the company are owed remuneration of R$20000$ each.

$9.$

Based on the profit for the year, an amount of R$30000$ is still owed to South African Revenue Services for company tax.

$10.$

The directors declared a final dividend of $12$ cents per share. The interim dividend amounted to R$100000.$