QUESTION 5 FINANCIAL STATEMENTS (20) The trial balance,adjustments and additional information given below were extractedfrom the accounting records of Concha Traders on 28 February 2017,the end of the financial year. REQUIRED Prepare the Statement ofFinancial Position of Concha Traders as at 28 February 2017. Pleaseuse an example of THE STATEMENT OF FINANCIAL POSITION FROM THESOUTH AFRICAN ACCOUNTING SYSTEM. The notes to the financialstatements are not required. Where applicable, show calculations inbrackets. INFORMATION CONCHA TRADERS PRE-ADJUSTMENT TRIAL BALANCEON 28 FEBRUARY 2017 Debit (R) Credit (R) Balance sheet accountssection Capital 162 000 Drawings 70 000 Vehicles at cost 180 000Equipment at cost 120 000 Accumulated depreciation on vehicles 90000 Accumulated depreciation on equipment 38 000 Trading inventory70 000 Debtors control 32 000 Provision for bad debts 4 000 Bank 22000 Cash float 2 000 Creditors control 40 000 Mortgage loan: AriesBank (16% p.a.) 80 000 Nominal accounts section Sales 485 000 Costof sales 240 000 Sales returns 5 000 Salaries and wages 84 000 Baddebts 5 000 Consumable stores 2 000 Rent expense 28 000 Motorexpenses 15 000 Bad debts recovered 2 000 Telephone 7 000Electricity and water 11 000 Bank charges 3 000 Insurance 4 000Interest on mortgage loan 6 000 Commission income 5 000 906 000 906000 MANCOSA: BBA YEAR 1 PROGRAMME HANDBOOK: JANUARY 2018 INTAKE 7272 Adjustments and additional information The net profit accordingto the Statement of Comprehensive Income, after taking thefollowing into account, was R38 970: 1. According to physicalstocktaking done on 28 February 2017, trading inventory on handamounted to R68 000. 2. Consumable stores used during the financialyear amounted to R1 800, according to a physical count. 3. No entryhas been made for a commission of 10% earned but not received on500 items that were sold for R60 each. 4. No entry has been madefor a cheque for R600 that was received from an insolvent debtor,J. Marsh, who was only able to pay 30% of her debt. The balance ofher account must now be written off as well. 5. The provision forbad debts must be decreased to R1 500. 6. The telephone account forFebruary 2017 has not yet been paid, R700. 7. The rental agreementssigned with the lessor (landlord) are as follows: R30 000 for theperiod 01 January 2016 to 31 December 2016, and R36 000 for theperiod 01 January 2017 to 31 December 2017. Make the necessaryadjustment. 8. The loan from Aries Bank was obtained on 01September 2016. Provide for the outstanding interest. (Interest isnot capitalised.) R20 000 of the amount owing to Aries Bank will berepaid during the next financial year. 9. The insurance totalincludes an annual premium of R1 800 that was paid for the period01 June 2016 to 31 May 2017. 10. The bank statement for February2017 reflected bank charges of R180 that have not yet beenrecorded. 11. The electricity and water account was debited with anamount of R1 000 for the personal electricity account of theproprietor, that was paid for with a business cheque. 12. Providefor depreciation as follows: 12.1 On equipment at 15% per annum oncost. 12.2 On vehicles at 25% per annum on the diminishing balance.13. An account received from Heidi Motors to replace two tyres onthe delivery vehicle of the business, R2 000, has not beenrecorded.