Q 6.

1
a)
YEGO TRADERS
Statement of profit or loss for the year ended 28 February 20.23
Sales 115,500
Cost of Sale -58,350
GROSS PROFIT 57,150
Other Income 8,280
Rent income (7 800 - 600) 7,200
Interest on fixed deposit (720 + 360) 1,080

Expenses -163,596
Salaries and Wages (128800 + 300) 129,100
Cleaning material (1500 - 900) 600
Bank charges 399
Stationery (525 - 25) 500
Telephone (861+139) 1,000
Vehicle expenses 1,200
Interest on loan (5760-420) 5,340
Bad debts (120+96)+[(4116-96)*5%-180] 237
Depreciation 900 + (127 000 - 5400)*20% 25,220

LOSS FOR THE YEAR -98,166

b)
Statement of changes in equity for the year ended 28 February 20.23
Balance 1/3/20.22 1,780,802
Loss for the year -98,166
Drawings for the year -14,400
Balance 28/2/20.23 1,668,236
c)
YEGO TRADERS

STATEMENT OF FINANCIAL POSITION AS AT 28 February 20.23

ASSETS
Non-current assets 1,694,180
Land and Buildings 1,566,000
Vehicles (127000-5400-24320) 97,280
Equipment (20700-900-900) 18,900
Fixed deposit 12,000

420= prepaid interest on loan

900=prepaid cleaning material
Current assets 360=accrued intetst income 22,300
Inventory 25=prepaid stationery 16,326
Trade and other receivables (4116-96-201) + 420 + 900 + 360 + 25 5,524
Cash and cash equivalents 450

1,716,480

EQUITY AND LIABILITIES

Owner's equity 1,668,236
Caital 1,668,236

Non-current liabilities 18,000

Mortgage Loan (30000-12000) 18,000

Current liabilities 139=Accrued telephobne 30,244

Mortgage loan (short term part) 300=Accrued salary 12,000
600=rent income received in advance
Short term loan 6,000
Trade and other payables (5457 + 139 +300 + 600) 6,496
Bank 5,748

1,716,480
 Receivables control
Balance 4116 Bad debts 96

Allowance for bad debts/credit losses negative asset

Balance 180
Bad debts 21
201

Bad debts/Credit losses loss/expense

Balance 120 profit or loss 237
Receivables control 96
Allowance 21

Allowance for credit losses:

4116-96= 4020
Allowance must be 201 5%
Allowance was 180
adjust allowance with 21 (201-180)

Interest on all loans paid 5760

in advance 6000*.14*6/12 -420
 5340
Depreciation Vehicles

cost 127000
acc depreciation -5400
121600
depreciation 20%*121600 -24320
Carrying value 97280

Depreciation Equipment
Given 900 per year