QUESTION 3 The accountant hands to you the followingpre-adjustment trial balance of JOU BOU ENTERPRISES: JOU BOU Trialbalance on 28 February 20.4 Dr Cr R R Purchases 107 000Administrative expenditure 28 400 Bank 101 500 Fuel 34 000 VATinput 5 000 VAT control 8 000 VAT output (VAT rate = 10%) 20 000Debtors control 9 100 Land 150 000 Trademarks 20 000 Rental income22 000 Capital ? 11 Drawings 30 500 Accrued depreciation – vehicle21 000 Mortgage loan 120 000 Sales 200 000 Insurance 23 200Vehicles 30 000 Inventory – 1/3/20.3 12 500 Allowance for creditlosses 1 000 560 000 560 000 Additional information: 1. Allowancefor credit losses must be adjusted to 10% of debtors. 2. Rentalincome amounts to R1 100 per month (VAT included). 3. The mortgageloan carries interest at a rate of 20%. The loan of R120 000 wasmade on 28 February 20.3 and must be repaid in equal capitalinstalments over six (6) years. The payment has already been madebut no entries has been made. 4. After a stock-take was done, thefollowing was found: Quantity Cost price 10kg Bags JOU BOU 100 R405kg Bags JOU BOU 100 R30 5. The entity has three (3) identicalvehicles in use that were purchased on the same date. Depreciationis provided for on the straight line basis at 20% on the costprice. No depreciation has been provided yet, the current year. 6.One of the vehicles was hijacked in the city on the last day of thefinancial year. The insurance paid out R3 300, including 10% VAT.The transaction has not yet been accounted for. 7. Trademarks arewritten of on the straight line basis at R1 000 per annum.REQUIRED: Prepare the statement of financial position on 28February 20.4 to comply with the requirements of IFRS and CompaniesAct. (notes are not required).
