- List Of Balances At 31 December 2020 Capital D Song Drawings Land And Buildings At Cost Vehicle At Cost Accumulated Dep 1 (75.84 KiB) Viewed 36 times
1. Included in rent expenses is an amount of R68 000 in respect
of rent for 2021 which was paid and recorded in December 2020.
2. The telephone account for December 2020 of R1 540 was
received but not yet paid.
3. Repairs to the vehicle costing R24 000 were incorrectly
debited to the vehicle at cost account. No correction has been made
at yet.
4. Depreciation on vehicle is taken into account on the
straight-line method at 20% per year. The residual value of the
vehicle is estimated at R48 000.
5. An amount of R60 000 was paid on the long term loan from the
bank on 31 December 2020 and correctly recorded.
6. A trade receivable’s account of R5 200 must be written off as
irrecoverable. The allowance for credit losses must be adjusted to
equal 10% of remaining outstanding trade receivables.
7. Consumable material on hand at 31 December 2020 is R24
000.
8. Land and buildings are not depreciated.
Prepare the asset and liabilities sections only of the statement
of financial position. The equity section is not required.
List of balances at 31 December 2020 Capital: D Song Drawings Land and buildings at cost Vehicle at cost Accumulated depreciation: Vehicle (1 January 2020) Bank Inventories: Consumables Trade receivables Allowance for credit losses 10% Long term loan Trade payables Fees earned Rent expense Telephone Other distribution expenses Interest on long term loan Debits - R 160 000 582 000 224 000 360 000 104 000 261 200 160 000 10 708 454 752 19 000 2 335 660 Credits - R 660 000 46 000 13 060 320 000 260 000 1 036 600 2 335 660