BARATA TRADING
[22 Marks]
Balances extracted from the books of Barata Trading for the year ended 31 March
2016
Capital
Vehicle
Furniture
Accumulated depreciation: Vehicle
Accumulated depreciation: Furniture
Debtors allowances
Interest on overdraft
Cost of sales
Account receivable
Account payable
Allowance for credit loss
Revenue
Credit loss
Interest received
Selling expenses
Bank (favourable)
Drawings
Stationery
Rent received
Fuel
Long term loan
Salaries
107 925
25 000
21 750
1 750
2 000
51 775
7 525
51 775
21 000
100 250
1 250
149 675
4 150
2 700
26 725
66 525
25 000
1 200
1 125
39 150
24 200
43 775
Additional information:
1. Interest paid to the amount of R150 was erroneously posted to interest
received account, the error must be corrected.
2. Credit loss still to be written off R700.
3. Allowance for credit loss must be increased to R2 500.
4. Stationery on hand – 31 March 2016, R300.
5. Provide depreciation for vehicle at 10% p.a. using straight line method and
furniture at 20% p.a. using diminishing balance. Take into account that new
vehicle with a cost price of R5 000 was purchased and recorded on
1 March 2016.
6. The selling expenses were under stated by R225, the mistake must be
corrected.
7. Carriage outwards of R2 000 was not recorded.
8. R1 650 for fuel was not recorded.
You are required to:
Prepare the statement of profit or loss and other comprehensive income for the year
ended 31 March 2016.