Exercise 6.3
The following information is from the books of Tsolele and Linotsi at the end
of the financial year on 31 December 2019.
Tsolele and Linotsi
TRIAL BALANCE FOR THE YEAR ENDED 31 DECEMBER 2019
Sales (revenue)
Purchases
All
Returns Le
Inventory (01/01/2019)
Discounts
Carriage inwards
Salaries and wages
General expenses
Rent income (receivable)
Carriage outwards
Premises (at cost)
Provision for depreciation of premises
Office equipment (at cost)
Provision for depreciation of office equipment
Bank
Trade receivables
Trade payables
Debit
Credit
70300
32 500
150
300
3.400
500
400
1.300
6820
2450
580
85 000
20.000
4 500
7500
6.000
4 200
8.500
3.800
5.200
10 000
40 000
30 000
Free interest loan from AAT Bank
Salary: Linotsi
Capital accounts:
Tšolele
Linotsi
Current accounts:
Tšolele (Cr.)
Linotsi (Dr.)
Drawings accounts:
Tšolele
Linotsi
2 200
1.000
2000
Additional information:
.
Inventory at 31 December 2019 is valued at M2 600.
Provision for depreciation:
.
Premises charged at 5% p.a. using the straight-line method
. Office equipment charged at 10% p.a. using the reducing-balance
method.
Salaries and wages accrued, M280
Rent income (receivable) paid up to 29 February 2020
2% of trade receivable must be provided for doubtful debts.
According to the Partnership Deed:
.
Profits and losses are shared in the ratio of 4:3, respectively.
Linotsi will be paid an annual salary of M6 000
.
Interest of 5% charged on drawings
Interest of 10% charged on capital
Prepare
the Income Statement for the year ended 31 December 2019.
Prepare the Appropriation account for the year ended 31 December 2019
and
the Current accounts in the Statement
of Financial Position. Seneral Ice
Prepare the Statement of Financial Position as at 31 December 2019,
Around bake belais
800
174 700
174
Dennings
1.000
​