QUESTION 6

The following information relates to the trial balance of SD Ltd at 28 February

2002.

  Debit Credit
  R R
Accumulated depreciation: Equipment 3 000
Accumulated depreciation: Vehicles 26 000
Accounts payable 50 750
Accounts receivable 40 140
Stock (1/03/2001) 4 000
Credit losses 230
Drawings 4 400
Packing material 800
Insurance 2 750
Rent received 2 860
Commission received 480
Purchases allowances 550
Sales returns 615
Carriage on purchases 400
Purchases 170 500
Carriage on sales 670
Sales 253 615
Electricity and water 3 300
Salaries 38 500
Equipment 15 000
Vehicles 120 000
Land and buildings 180 000
Bank 5 950
Capital 250 000
  587 255 587 255

ADDITIONAL INFORMATION

Chapter 5 1
1. Debtor S Sinn is insolvent; his debt of R120 has to be written off as
irrecoverable.
2. Provision must be allowed for depreciation at the following amounts:
Vehicles R15 750
Equipment R1 250
3. Rent has been received until the 31 March 2002.
4. Salary of R1 500 has been paid in advance.
5. An insurance premium of R250 per month has not been paid for one month.
6. Commission to the value of R880 has been earned on 28 February 2002 but
not yet received.
7. Inventory on 28 February 2002 amounts to the following:
Trading stock R6 500
Packing material R175
8. Delivery fees of R50 on purchases have not yet been paid.

REQUIRED
Prepare the statement of profit or loss and other comprehensive income,
and a statement of financial position.

Chapter 5 2