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QUESTION 11 The following trial balance was extracted from the books of Maliga, a sole trader, TAS.(000's] Be=i 11 .fi] iv] vi Capital Debtors The following information was also available: vil vil Creditors Motor Vehicles, at Cost Provision for Depreciation of Motor Vehicles Sales Purchases Salaries Electricity Postage and Stationery Telephone Rent Received Freehold Buildings, at Cost Provision for Depreciation, buildings Motor expenses Proceeds from sale of vehicle Drawings Rates and Insurance Bad debts COVENANY Provision for Doubtful debts Bank Stock Stock at 31 December 2005 was TAS. 17,000,000. 37,650 40,500 154,000 22,000 5,570 1,640 890 100,000 716 54,000 2,550 149 5,248 11,000 435,913 at 31 December 2005. TAS. [000's] 100,000 - 12,833 23,500 279,000 600 18,000 1,750 230 T 435,913 Wages are a direct cost and are changed to the trading account A van purchased in 2001 for TAS. 10,000,000 was sold during the year. The only record of the transaction was the credit of TAS. 1.750,000. Motor vehicles are depreciated at 20% on cost. Buildings are to be depreciated by TAS. 1,000,000. Depreciation is provided in the year an asset is purchased but not in the year of sale. At 31 December 2005, rates and insurance were paid in advance by TAS. 400,000 and there was an outstanding bill for electricity of TAS. 150,000. It is estimated telephone usage not yet paid for is TAS. 80,000. One mom of the premises is sublet at an annual rental of TAS. 800,000. At the year end the tervet owes three months rent. The provision for doubtful debts is to be adjusted to cover a specific debt of TAS. 50,000 and 1% of the remaining debts. Required: Prepare an Income Statement for the year ending 31 December 2005, and a Balance Sheet as at that date. Note: You are expected to use the statement format of financial statements.

The followirg irfommion was also awadare: Stock at 31 Decermber 2005 wris TAS, 17,000,000. Wages are a cliect cost ard ae chuged to the trading accourt A van purthesed in 2001 for TAS. 10,000,000 wrs sold during the yenr. The orly record of the tareaction wis the ciedit of TAS. 1,750,000. teareaction wis the ciedit of TAS. 1,750,000. 1,000,000. Depucciation is provided in the year an asset is puchsed but not in the year of sale. wrs an outsarring bill for clectricity of TAS. 150,000. It is estimned telephore usage not yet prid for is TAS. 80,000 . v) Ore rpom of the prenises is sublet at an arund rertal of TAS. 800,000. At the year erd the teruxt ones the mondis rere. The povision for doubdul debts is to be aljusted to cover a specific debe of TAS. 50,000ard 1% of the remining debs Rerpuirut: Phepre an frcome Staterment for the yeur erding 31 December 2005 , and a Balarce Sheet as at that date Note You ive expected to use the striereit forme of fincial staternests

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