You are provided with the following information:
PRE- ADJUSTMENT TRIAL BALANCE OF YEGO TRADERS ON 28 February 20.23
Dr Cr
Capital 1 780 802
Drawings 14 400
Land and Buildings 1 566 000
Equipment 20 700
Vehicles 127 000
Mortgage loan (15%) 30 000
Short term loan (14%) 6 000
Fixed deposit (12%) 12 000
Receivables control 4 116
Payables control 5 457
Inventory 16 326
Petty cash 450
Bank 5 748
Accumulated Depreciation: Equipment (1 March 20.22) 900
Accumulated Depreciation: Vehicles (1 March 20.22) 5 400
Allowance for bad debts 180
Sales 115 500
Cost of Sales 58 350
Salaries and wages 128 800
Cleaning material 1 500
Rent income 7 800
Bank charges 399
Stationery 525
Telephone 861
Vehicle expenses 1 200
Interest on loan 5 760
Bad debts 120
Interest on fixed deposit 720
1 958 507 1 958 507
Additional Information:
1. The wage of an employee for February 20.23 is due to him, R300.
2. Rent has been received for 13 months.
3. Interest on the mortgage loan was paid in full for 12 months, while interest on the short-term loan was paid for six months in advance. The short-term loan was obtained on 1 March 20.22.
4. The mortgage loan is repayable in monthly instalments of R1 000.
5. Write off an extra amount of R96 as irrecoverable.
6. Depreciation is provided for as follows:
- On equipment: An amount of R900 per year.
- On vehicles: 20% per annum according to the diminishing balance method.
7. The following was on hand at 28 February 20.23
- Cleaning materials R900
- Stationery R25
8. An amount of R139 is due on the telephone account of February 20.23.
9. Interest on fixed deposit was received for six months. The money on the fixed deposit was invested on 1 June 20.22 for a period of 5 years.
10. The allowance for bad debts must be adjusted to 5% of the receivables.
Required:
a) The statement of Profit or Loss of Yego Traders for the year ended 28 February 20.23
b) The Statement of changes in equity for the year ended 28 February 20.23
c) The Statement of Financial position as at 28 February 20.23
(Notes to Financial statements are not required).
a) Statement of Profit or Loss for Yego Traders for the year ended 28 February 20.23:
Revenue:
Sales: 115,500
Rent income: 7,800
Total Revenue 123,300
Expenses:
Cost of Sales: 58,350
Salaries and wages: 128,800
Cleaning material: 1,500
Bank charges: 399
Stationery: 525
Telephone: 861
Vehicle expenses: 1,200
Interest on loan: 5,760
Bad debts: 216
Depreciation:
Equipment: 900
Vehicles: 25,400
Total Expenses: 223,611
Net Profit (Loss) before tax: (100,311)
b) Statement of Changes in Equity for Yego Traders for the year ended 28 February 20.23:
Capital:
Beginning balance: 1,780,802
Net Profit (Loss): (100,311)
Drawings: (14,400)
Ending balance: 1,666,091
c) Statement of Financial Position as at 28 February 20.23:
Assets:
Land and Buildings: 1,566,000
Equipment: 19,800 (20,700 - 900)
Vehicles: 101,600 (127,000 - 25,400)
Fixed deposit: 6,240 (12,000 / 2)
Receivables control: 3,910 (4,116 - 206)
Inventory: 16,326
Cleaning materials: 900
Stationery: 525
Petty cash: 450
Bank: 5,748
Total Assets: 1,721,699
Equity and Liabilities:
Capital: 1,666,091
Drawings: 14,400
Short term loan: 6,000
Mortgage loan: 29,900 (30,000 - 100)
Payables control: 5,457
Total Equity and Liabilities: 1,721,699