The following balances were taken from Hashtag Traders, a general dealer in Rustenburg, on 31 May...
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The following balances were taken from Hashtag Traders, a general dealer in Rustenburg, on 31 May 2020, the end of the accounting period. R R Capital 2 000 000 Drawings Land and buildings at cost 45 000 950 000 Vehicles at cost 390 000 Equipment at cost Accumulated depreciation on vehicles (1 June 2019) 89 800 112 000 Accumulated depreciation on equipment (1 June 2019) Trading inventory (1 June 2019) Debtors control 13 265 450 000 32 000 Allowance: credit losses 3 800 Bank (favourable) 550 000 Petty cash 1 500 Creditors control 60 000 Accumulated profit/(loss) 319 235 Sales Purchases Sales returns Water and electricity 2 895 320 985 790 7 430 15 650 Credit losses 550 Telephone Carriage on purchases 18 900 7 950 Rent expense 120 000 Salaries and wages Bank charges 420 000 2 963 Rates and taxes 10 500 Consumables Stationery 2 100 5 700 Additional information: 1. The entity makes use of the periodic inventory system. A physical stock count on 31 May 2020, showed the following inventories on hand: a. Trading inventory: R560 000 b. Stationary: R2 200 c. Consumables: R750 2. On 24 May 2020, the owner took goods for his personal use to the value of R5 500. No accounting entry has yet been made. 3. A debtor's account of R4 320 must still be written off as irrecoverable. 4. The allowance for credit losses must be adjusted to 10% of the outstanding debtors. 5. Land and buildings, purchased on 1 June 2019, are situated on Stand 1302, Rustenburg, and are not depreciated. Depreciation on other assets must still be provided for: Vehicles: 20% on the straight-line method; and a. b. Equipment: 15% on the reducing balance method. REQUIRED: a. Prepare the Statement of Financial Position on 31 May 2020 for Hashtag MARKS 15 Traders. You will be penalized if the correct format is not used. b. Show the appropriate notes to the financial statements for the year ending 32 May 2020. You will be penalized if the correct format is not used. 10 TOTAL MARKS 25 The following balances were taken from Hashtag Traders, a general dealer in Rustenburg, on 31 May 2020, the end of the accounting period. R R Capital 2 000 000 Drawings Land and buildings at cost 45 000 950 000 Vehicles at cost 390 000 Equipment at cost Accumulated depreciation on vehicles (1 June 2019) 89 800 112 000 Accumulated depreciation on equipment (1 June 2019) Trading inventory (1 June 2019) Debtors control 13 265 450 000 32 000 Allowance: credit losses 3 800 Bank (favourable) 550 000 Petty cash 1 500 Creditors control 60 000 Accumulated profit/(loss) 319 235 Sales Purchases Sales returns Water and electricity 2 895 320 985 790 7 430 15 650 Credit losses 550 Telephone Carriage on purchases 18 900 7 950 Rent expense 120 000 Salaries and wages Bank charges 420 000 2 963 Rates and taxes 10 500 Consumables Stationery 2 100 5 700 Additional information: 1. The entity makes use of the periodic inventory system. A physical stock count on 31 May 2020, showed the following inventories on hand: a. Trading inventory: R560 000 b. Stationary: R2 200 c. Consumables: R750 2. On 24 May 2020, the owner took goods for his personal use to the value of R5 500. No accounting entry has yet been made. 3. A debtor's account of R4 320 must still be written off as irrecoverable. 4. The allowance for credit losses must be adjusted to 10% of the outstanding debtors. 5. Land and buildings, purchased on 1 June 2019, are situated on Stand 1302, Rustenburg, and are not depreciated. Depreciation on other assets must still be provided for: Vehicles: 20% on the straight-line method; and a. b. Equipment: 15% on the reducing balance method. REQUIRED: a. Prepare the Statement of Financial Position on 31 May 2020 for Hashtag MARKS 15 Traders. You will be penalized if the correct format is not used. b. Show the appropriate notes to the financial statements for the year ending 32 May 2020. You will be penalized if the correct format is not used. 10 TOTAL MARKS 25
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