Reference no: EM132695638
Question - Tedsad Stores has been in business for a year and the following information was extracted from the business' books. The financial year end is February, Tedsad Stores is NOT a VAT vendor and uses the Perpetual Inventory system.
Pre-adjustment Trial Balance on 29 February 2020
Statement of Financial Position section Fol Debit (R) Credit (R)
Capital B1 270 000
Drawings B2 20 000
Land and Buildings B3 190 000
Vehicles at cost B4 140 000
Equipment at cost B5 100 000
Accumulated depreciation on vehicles B6 80 000
Accumulated depreciation on equipment B7 56 000
Fixed deposit B8 30 000
Trading Inventory B9 25 770
Debtors Control B10 29 600
Allowance for credit losses B11 2 000
Bank B12 12 330
Cash Float B13 1 500
Creditors Control B14 27 780
Mortgage Loan B15 48 000
Nominal accounts section
Sales N1 268 400
Cost of Sales N2 90 000
Sales Returns N3 2 000
Salaries and Wages N4 59 000
Credit Losses N5 2 800
Consumable Stores N6 4 560
Advertising N7 11 900
Maintenance and repairs N8 27 590
Telephone N9 6 770
Electricity and water N10 6 790
Charges N11 4 590
Insurance N12 12 980
Rent Income N13 26 000
778 180 778 180
Adjustments not taken into account:
1) An account for advertising, R300, is still owing to the local newspaper and has not been recorded.
2) The rent for March 2020 has already been received. There were no increases in rent during the year.
3) Insurance includes an amount of R3 450 in respect of the next financial year
4) The account of a debtor, D Moss, must be written off, R300.
5) The interest on the fixed deposit, R2 550 had not yet been received from the bank. 6) After the annual stock take, the following items were on hand:
Trading Inventory R25 000
Consumable Stores R560
7) Depreciation for the year has not yet been recorded:
Vehicles R28 000
Equipment R15 000
Required -
1. Prepare the statement of profit or loss and other comprehensive income of Tedsad Stores for the year ended 29 February 2020.
2. Prepare the trade and other receivables note to the financial statements for the year ended 29 February 2020.