QUESTION 5 (25 Marks) The following Trial Balance at 30 June 2020 was extracted from the ledger accounts of “PP DISTRIBU
Posted: Sun Apr 17, 2022 7:04 pm
QUESTION 5 (25 Marks) The following Trial Balance at 30 June
2020 was extracted from the ledger accounts of “PP DISTRIBUTORS
CC”. N$ N$ ACCOUNT DESCRIPTION DR CR Members salaries Members
contribution Sales Cost of Sales Retained Earning: 01 July 2019
Interim profit Distribution : Piet : Plessis Loan to members:
Plessis Allowance for credit losses Investment: West Rand Mines
(Pty) Ltd Inventories : Trade Inventories : Consumable Inventories
: Packaging Material Land and Buildings Motor Vehicles Furniture
Equipment Prepaid tax: NaMRA Accounts receivable Accrued expense
Accumulated depreciation: Furniture Accumulated depreciation:
Equipment Investment Income Long term loan: Bouland Bank Accounts
Payable Bank Petty cash Bad debts Salaries and wages Distribution
costs Other operating expenses Loan from member: Piet Finance costs
30 000 897 000 45 000 45 000 80 000 205 000 107 500 13 000 17 000
520 000 180 000 77 000 120 000 40 000 95 000 25 600 600 1 400 101
000 77 000 62 000 20 000 450 000 1 675 000 54 200 4 600 11 600 21
000 19 000 10 300 310 000 106 500 96 900 2 759 100 2 759 100
Additional Information:- 1. The corporation has two members, Piet
and Plessis who holds equal interest. 2. At the members meeting
conducted in March 2020 it was resolved that:- Members will be
paid a further profit distribution of N$25 000 each at year end.
Due to an increase in operations a new Motor vehicle had to be
acquired. On the 01 April 2020 a vehicle with a cost price of N$180
000 was acquired. No vehicles existed prior to this acquisition.
The correct entries were processed to record the purchase of the
vehicle. No assets were sold off during the year. 9 The loan
from Piet, accrues interest at a rate of 8% per annum. No fixed
repayment terms were agreed upon and the loan is unsecured.
Interest has not be taken into account yet. No interest will be
levied on Loans to member: Plessis, as it has always been done in
the past. No interest accrual will be made for the year ended 30
June 2020. Land and Buildings was revaluated for the first time
this year. Jacobus Oosthuizen, a sworn valuator was appointed to
value the property and he attached a value of N$740 000 at 30 June
2020. 2. Depreciation for the current year has not been accounted
for. It has been the policy of the entity to depreciate assets as
follows:- a. Furniture : 20 % p.a on reducing balance basis b.
Equipment : 10% p.a on straight line basis c. Motor Vehicles: 20%
p.a on straight line basis 3. Total taxation expense for the year
was calculated to be N$67 500, but no entry has been made to record
this yet. 4. A debtor with a balance of N$550 must still be written
off as irrecoverable. Allowance for credit losses must be adjusted
to 6% of the outstanding debtors at year end. YOU ARE REQUIRED: 1.
Prepare the Statement of comprehensive income of PP Distributors
for the year ended 30 June 2020. No notes are required. (13 marks)
2. Prepare the ASSETS section of the Statement of financial
position at 30 June 2020. No notes are required. (12 marks) PLEASE
NOTE: Grouping together of amounts count marks, therefore please
show all calculations. No comparative figures are required.
2020 was extracted from the ledger accounts of “PP DISTRIBUTORS
CC”. N$ N$ ACCOUNT DESCRIPTION DR CR Members salaries Members
contribution Sales Cost of Sales Retained Earning: 01 July 2019
Interim profit Distribution : Piet : Plessis Loan to members:
Plessis Allowance for credit losses Investment: West Rand Mines
(Pty) Ltd Inventories : Trade Inventories : Consumable Inventories
: Packaging Material Land and Buildings Motor Vehicles Furniture
Equipment Prepaid tax: NaMRA Accounts receivable Accrued expense
Accumulated depreciation: Furniture Accumulated depreciation:
Equipment Investment Income Long term loan: Bouland Bank Accounts
Payable Bank Petty cash Bad debts Salaries and wages Distribution
costs Other operating expenses Loan from member: Piet Finance costs
30 000 897 000 45 000 45 000 80 000 205 000 107 500 13 000 17 000
520 000 180 000 77 000 120 000 40 000 95 000 25 600 600 1 400 101
000 77 000 62 000 20 000 450 000 1 675 000 54 200 4 600 11 600 21
000 19 000 10 300 310 000 106 500 96 900 2 759 100 2 759 100
Additional Information:- 1. The corporation has two members, Piet
and Plessis who holds equal interest. 2. At the members meeting
conducted in March 2020 it was resolved that:- Members will be
paid a further profit distribution of N$25 000 each at year end.
Due to an increase in operations a new Motor vehicle had to be
acquired. On the 01 April 2020 a vehicle with a cost price of N$180
000 was acquired. No vehicles existed prior to this acquisition.
The correct entries were processed to record the purchase of the
vehicle. No assets were sold off during the year. 9 The loan
from Piet, accrues interest at a rate of 8% per annum. No fixed
repayment terms were agreed upon and the loan is unsecured.
Interest has not be taken into account yet. No interest will be
levied on Loans to member: Plessis, as it has always been done in
the past. No interest accrual will be made for the year ended 30
June 2020. Land and Buildings was revaluated for the first time
this year. Jacobus Oosthuizen, a sworn valuator was appointed to
value the property and he attached a value of N$740 000 at 30 June
2020. 2. Depreciation for the current year has not been accounted
for. It has been the policy of the entity to depreciate assets as
follows:- a. Furniture : 20 % p.a on reducing balance basis b.
Equipment : 10% p.a on straight line basis c. Motor Vehicles: 20%
p.a on straight line basis 3. Total taxation expense for the year
was calculated to be N$67 500, but no entry has been made to record
this yet. 4. A debtor with a balance of N$550 must still be written
off as irrecoverable. Allowance for credit losses must be adjusted
to 6% of the outstanding debtors at year end. YOU ARE REQUIRED: 1.
Prepare the Statement of comprehensive income of PP Distributors
for the year ended 30 June 2020. No notes are required. (13 marks)
2. Prepare the ASSETS section of the Statement of financial
position at 30 June 2020. No notes are required. (12 marks) PLEASE
NOTE: Grouping together of amounts count marks, therefore please
show all calculations. No comparative figures are required.