Financial Reporting

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Ans mer ALt euestions in shis paper. IIDO MARKSI GUESTICN 1 R.GUtRE: (20) Haks) Prepare the Statmment of Comprehenave incere of Dundee Trades tor the yed anded zo Febnary 2023. MFOFMATISN The prt-adjestment thal balance and adsional information piven below were asacted fym the acosunting foconds of Dundet Treders on 28 Febnioy 2023 , the end of the financial year Adjentmatt and adsitienal information 1 Acooding to physical stocktaing underiaken on 28 Febnary 2023, arading ineotory on hund amounhed to Rsto oot 2. Consunable stoes used during the francal ptar anounted to Re 500 . for Riss bon RS 000 The balance of her aceount munt now be wrBset of 5. The pevioion lor bad bets rust be incresed by R3 250 6. The teinphone acoount for february 2ukt was due to be pad on cy Myah 202t, Rt 000 . 7. Henkhas been pad for the period 01 March 2022 to 31 March 2023 . Mike the hedessary adistment. 8. The kan trom Loo Bank was obtained on 01 Seplember zor2. Prowde for the oustanding interest, inberest is not caphalsed. 9. The incurance total incedes an arnua premium of R? sod thaf was paid for the petcd ot 4 y 2122 is 30 dune 7023 11. The tiectrely and wase asooult was errensbesly skbled with in amourt of Rth 060 for he personal electricty asobunt of he prapretier feat wats paid with he funds of the busmest 12. Pevide for depreciston as tolows: 12.1 Dn equpment at 10 per amnum on poet 122 Dn vehicles at 20 ph per anym on the dimenining balunoe. 13. An acoount seceived from Honda Motors to regar ihe detivery wehide of the business has not peen recerded R15 000. Answer ALL questions in this paper. [100 MARKS] QUESTION 1 (20 MARKS) REQUIRED Prepare the Statement of Comprehensive Income of Dundee Traders for the year ended 28 February 2023. INFORMATION The pre-adjustment trial balance and additional information given below were extracted from the accounting records of Dundee Traders on 28 February 2023 , the end of the financial year. \begin{tabular}{|l|r|r|} \hline Nominal accounts section & & \\ \hline Sales & & 2500000 \\ \hline Cost of sales & 1100000 & \\ \hline Sales returns & 50000 & \\ \hline Salaries and wages & 450000 & \\ \hline Bad debts & 20000 & \\ \hline Consumable stores & 10000 & \\ \hline Rent expense & 195000 & \\ \hline Motor expenses & 65000 & \\ \hline Bad debts recovered & & \\ \hline Telephone & 40000 & \\ \hline Electricity and water & 50000 & \\ \hline Bank charges & 15000 & \\ \hline Insurance & 20000 & \\ \hline Interest on mortgage loan & 25000 & \\ \hline Commission income & & \\ \hline & 4530000 & 4530000 \\ \hline \end{tabular} Adjustments and additional information 1. According to physical stocktaking undertaken on 28 February 2023, trading inventory on hand amounted to R300 000 . 2. Consumable stores used during the financial year amounted to R9 500 . 3. No entry has been made for a commission of 10% eamed but not received on items that were sold for R125000. 4. Received and recorded an amount of R3 000 from an insolvent debtor, K. Mariah, who owed R5 000. The balance of her account must now be written off. 5. The provision for bad debts must be increased by R3 250 . 6. The telephone account for February 2023 was due to be paid on 03 March 2023, R4 000 . 7. Rent has been paid for the period 01 March 2022 to 31 March 2023. Make the necessary adjustment. 8. The loan from Leo Bank was obtained on 01 September 2022. Provide for the outstanding interest. (Interest is not capitalised.) 9. The insurance total includes an annual premium of R7 500 that was paid for the period 01 July 2022 to 30 June 2023 . 10. The bank statement for February 2023 reflected bank charges of R1 000 that was not recorded. 11. The electricity and water account was erroneously debited with an amount of R10000 for the personal electricity account of the proprietor that was paid with the funds of the business. 12. Provide for depreciation as follows: 12.1 On equipment at 10% per annum on cost. 12.2 On vehicles at 20% per annum on the diminishing balance. 13. An account received from Honda Motors to repair the delivery vehicle of the business has not been recorded, R15000. QUESTION 1 REQUIRED (20 MARKS) Prepare the Statement of Comprehensive Income of Dundee Traders for the year ended 28 February 2023. INFORMATION The pre-adjustment trial balance and additional information given below were extracted from the accounting records of Dundee Traders on 28 February 2023, the end of the financial year. Adjustments and additional information 1. According to physical stocktaking undertaken on 28 February 2023, trading inventory on hand amounted to R300000. 2. Consumable stores used during the financial year amounted to R9 500 . 3. No entry has been made for a commission of 10% earned but not received on items that were sold for R125000. 4. Received and recorded an amount of R3 000 from an insolvent debtor, K. Mariah, who owed R5 000. The balance of her account must now be written off. 5. The provision for bad debts must be increased by R3250. 6. The telephone account for February 2023 was due to be paid on 03 March 2023, R4000. 7. Rent has been paid for the period 01 March 2022 to 31 March 2023. Make the necessary adjustment. 8. The loan from Leo Bank was obtained on 01 September 2022. Provide for the outstanding interest. (Interest is not capitalised.) 9. The insurance total includes an annual premium of R7500 that was paid for the period 01 July 2022 to 30 June 2023 . 10. The bank statement for February 2023 reflected bank charges of R1000 that was not recorded. 11. The electricity and water account was erroneously debited with an amount of R10000 for the personal electricity account of the proprietor that was paid with the funds of the business. 12. Provide for depreciation as follows: 12.1 On equipment at 10% per annum on cost. 12.2 On vehicles at 20% per annum on the diminishing balance. 13. An account received from Honda Motors to repair the delivery vehicle of the business has not been recorded, R15000