Reference no: EM132604956

Question - STATEMENT OF FINANCIAL POSITION

The following information relates to Apple Traders:

Partial pre-adjustment trial balance for the year ending 30 April 2020

R R

Statement of financial position section

Capital 1 278 510

Drawings 23 800

Land and buildings 1 270 000

Vehicles 68 000

Accumulated depreciation: Vehicles 20 560

Furniture and fittings 20 800

Accumulated depreciation: Furniture and fittings 6 810

Trading inventory (1 May 2019) 30 260

Debtors control 18 700

Bank 2 380

Creditors control 16 780

Additional information:

1. A physical stocktake was performed on 30 April 2020. The value of the stock on this date was R29 900

2. Depreciation must be provided for as follows:

Vehicles at a rate of 20% using the diminishing balance method

Furniture and fittings at a rate of 15% on cost

3. After consideration of the trade receivables, it was decided to raise an allowance for credit losses at 10% of outstanding debtors.

4. The rent for May 2020, R2 450, was received and banked before 30 April 2020.

5. Commission earned for April 2020 has not been accounted for or banked yet, R589.

6. The insurance premium for May 2020, R360, was already paid in April 2020.

7. The telephone account for April 2020 was received late and has not been paid yet, R3 120.

8. The profit for the year AFTER the adjustments above amounts to R91 821.

Required - Prepare the statement of financial position of Apple Traders as at 30 April 2020.