question archive QUESTION TWO [20] Sifiso Phakathi has a general dealer store in the Ixopo area that he has been operating for a few years
Subject:AccountingPrice: Bought3
QUESTION TWO [20]
Sifiso Phakathi has a general dealer store in the Ixopo area that he has been operating for a few years. The following information was provided by Sifiso for the financial year ended 28 February 2021:
Pre-adjustment trial balance at 28 February 2021 |
Debit - R |
Credit - R |
Land and buildings |
604 000 |
|
Equipment at cost |
195 000 |
|
Accumulated Depreciation: Equipment 1 March 2020 |
|
32 100 |
Inventory: trade goods – 1 March 2020 |
109 500 |
|
Trade receivables |
81 630 |
|
Bank |
20 220 |
|
Capital - Sifiso |
|
626 400 |
Drawings |
130 530 |
|
Long term borrowing: Niks Finance (15% per year) |
|
65 000 |
Trade payables |
|
69 400 |
Sales |
|
853 470 |
Rent income |
|
80 400 |
Purchases returns |
|
5 000 |
Purchases |
409 660 |
|
Sales returns |
6 800 |
|
Settlement discounts received |
|
5 150 |
Settlement discounts granted |
4 720 |
|
Advertising |
14 800 |
|
Consumables |
10 960 |
|
Insurance |
5 850 |
|
Other operating expenses |
136 000 |
|
Interest on borrowings |
7 250 |
|
|
1 736 920 |
1 736 920 |
|
|
Additional information:
R30 000. The purchase was recorded and is included in the above balances.
Required:
Prepare the following for Sifiso’s Stolo for the financial year ended 28 February 2021:
The statement of profit or loss and other comprehensive income.