Question 4 [25 Marks] B. No entry has been made for a direct deposit of R2 000 made by a debtor whose account had been written off as irrecoverable. Use the information given below to draw up the Statement of Comprehensive Income for TREK TRADING for the year ended 28 February 2017. C. Consumables include an amount of R120 for photocopies of recipe books made by the proprietor. TREK TRADING PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2017 D. Physical stocktaking on 28 February 2017 revealed the following inventories on hand Trading inventory, R153 000 Consumables, R880. DEBIT CREDIT 980 000 E. A payment of R2 200 on 27 February 2017 for security services has been incorrectly recorded as insurance. Correct this error. 284 210 750 000 270 000 F. The landlord has increased the monthly rent by R2 000 as per tenancy agreement with effect from 01 September 2016. Rent for February 2017 has not yet been paid. 366 000 118 800 G. An advertising contract costing R1 320 was paid and recorded on 01 August 2016. This BALANCE SHEET ACCOUNTS Capital Drawings Vehicles Equipment Accumulated Depreciation : Vehicle Accumulated Depreciation : Equipment Fixed Deposit : H. Bank [ 13.5%p.a.) Trading Inventory Debtors Control Provision for Bad Debts Bank Cash Float Creditors Control Loan: R. Bank (18 % p.a.) 70 000 146 000 90 000 contract expires on 31 July 2017. Make the necessary adjustment. H. Annual depreciation is provided as follows: 3 500 Bank 567 765 5200 . On equipment at 12% p.a. on cost. . On vehicle at 20% p.a. on the diminishing balance method. I. Provision for 72 000 280 000 bad debts must be increased by R1 500. J. Provide for outstanding interest on fixed deposit. 1 234 000 K. Interest on loan for the last quarter is outstanding. 725 880 18 120 400 000 4 200 3500 610 925 4 900 NOMINAL ACCOUNTS Sales Cost of sales Sales return Salaries and wages Bad debts Bank Bank charges Fee income Piret Discount received leuren Insurance Electricity and water Telephone Rent expense Interest on loan Interest on fixed deposit Security Consumables Advertising Vehicle expenses Staff development and training 23 400 27 400 10 800 143 100 37 800 7 875 23 800 18 000 20 550 13 275 25 000 3 678 000 3 678 000 Adjustments and additional information: A. Fee income of R4 600 has been received in advance. Question 4 [25 Marks] B. No entry has been made for a direct deposit of R2 000 made by a debtor whose account had been written off as irrecoverable. Use the information given below to draw up the Statement of Comprehensive Income for TREK TRADING for the year ended 28 February 2017. C. Consumables include an amount of R120 for photocopies of recipe books made by the proprietor. TREK TRADING PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2017 D. Physical stocktaking on 28 February 2017 revealed the following inventories on hand Trading inventory, R153 000 Consumables, R880. DEBIT CREDIT 980 000 E. A payment of R2 200 on 27 February 2017 for security services has been incorrectly recorded as insurance. Correct this error. 284 210 750 000 270 000 F. The landlord has increased the monthly rent by R2 000 as per tenancy agreement with effect from 01 September 2016. Rent for February 2017 has not yet been paid. 366 000 118 800 G. An advertising contract costing R1 320 was paid and recorded on 01 August 2016. This BALANCE SHEET ACCOUNTS Capital Drawings Vehicles Equipment Accumulated Depreciation : Vehicle Accumulated Depreciation : Equipment Fixed Deposit : H. Bank [ 13.5%p.a.) Trading Inventory Debtors Control Provision for Bad Debts Bank Cash Float Creditors Control Loan: R. Bank (18 % p.a.) 70 000 146 000 90 000 contract expires on 31 July 2017. Make the necessary adjustment. H. Annual depreciation is provided as follows: 3 500 Bank 567 765 5200 . On equipment at 12% p.a. on cost. . On vehicle at 20% p.a. on the diminishing balance method. I. Provision for 72 000 280 000 bad debts must be increased by R1 500. J. Provide for outstanding interest on fixed deposit. 1 234 000 K. Interest on loan for the last quarter is outstanding. 725 880 18 120 400 000 4 200 3500 610 925 4 900 NOMINAL ACCOUNTS Sales Cost of sales Sales return Salaries and wages Bad debts Bank Bank charges Fee income Piret Discount received leuren Insurance Electricity and water Telephone Rent expense Interest on loan Interest on fixed deposit Security Consumables Advertising Vehicle expenses Staff development and training 23 400 27 400 10 800 143 100 37 800 7 875 23 800 18 000 20 550 13 275 25 000 3 678 000 3 678 000 Adjustments and additional information: A. Fee income of R4 600 has been received in advance