ACCOUNTING
GRADE 11
FINANCIAL STATEMENTS
MEMORANDUM
COMPILED BY MRS S KHAN
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
FINANCIAL STATEMENTS – WORKWITH ACTIVITY 3
L LAILA AND Z ZANELE
LAZEN TRADERS
INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2015
Note
R
Sales 1 875 800 – 15 500
Cost of sales 685 000
Gross profit
Other operating income
Rent income 118 400 – 17 600
Discount received 3 600
Profit on sale of assets 18 000 + 14 000 – 30 000
Bad debts recovered
Provision for bad debts adjustment
1 860 300
(685 000)
1 175 300
111 038
100 800
6 600
2 000
1 500
138
Gross operating income
Operating expenses
Stationery 8 500 – 500
Packing material 9 603
Salaries and wages 188 400 + 10 000
Bad debts 4 500 + 400
Discount allowed 3 200
Insurance 80 400 – 13 200
Water and electricity 42 600 + 1 400
Sundry expenses 21 300
Trading stock deficit 126 500 – 121 000
Depreciation 50 000 + 30 000
Repairs to building
Pension fund contributions
Medical Aid contributions
UIF contributions
1 286 338
(448 308)
8 000
9 603
198 400
4 900
3 200
67 200
44 000
21 300
5 500
80 000
4 000
1 125
980
100
Operating profit (loss)
Interest income
Profit (loss) before interest expense
Interest expense
1
2
Net profit (loss) for the year
2
838 030
7 500
845 530
(45 000)
800 530
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
L LAILA AND Z ZANELE
LAZEN TRADERS
BALANCE SHEET AT 28 FEBRUARY 2015
Note
R
ASSETS
NON-CURRENT ASSETS
Fixed / Tangible assets
Financial assets – Fixed Deposit 100 000
3
CURRENT ASSETS
Inventories
Trade & other receivables
Cash & cash equivalents
4
5
6
TOTAL ASSETS
1 898 000
1 798 000
100 000
292 535
121 500
71 038
99 997
2 190 535
EQUITY & LIABILITIES
OWNER’S EQUITY
Capital
Current accounts
7
8
NON-CURRENT LIABILITIES
Loan from GP Bank 180 000 – 120 000
Loan from
1 859 530
1 500 000
359 530
60 000
60 000
CURRENT LIABILITIES
Trade & other payables
Bank overdraft
Current portion of loan (NB could be placed in Note 8)
8
271 005
151 005
120 000
TOTAL EQUITY & LIABILITIES
2 190 535
L LAILA AND Z ZANELE
LAZEN TRADERS
NOTES TO THE FINANCIAL STATEMENTS AT 28 FEBRUARY 2015
1 INTEREST INCOME
On fixed deposit 3 600 + 3 900
On savings account
On current account
On overdue debtors
7 500
7 500
2 INTEREST EXPENSE
On loans from 180 000 + 165 000 – 300 000
On overdraft
On overdue creditors
45 000
45 000
3
ACC GR11 PARTNERSHIPS
3 FIXED/TANGIBLE ASSETS
Carrying value beginning of year
COMPILED BY MRS S KHAN
Land &
buildings
1 300 000
Cost
Accumulated depreciation
1 300 000
Movement
Additions
Disposals at carrying value
Depreciation
Carrying value at end of year
Cost
Accumulated depreciation
*R30 000 – R14 000
= R16 000
1 300 000
1 300 000
Vehicles
Equipment
Total
500 000
94 000
1 894 000
680 000
(180 000)
150 000
(56 000)
2 130 000
(236 000)
(50 000)
*(16 000)
(30 000)
(16 000)
(80 000)
450 000
48 000
1 798 000
680 000
**120 000
2 100 000
(230 000)
***(72 000)
(302 000)
** R150 000 – R30 000 = R120 000
*** R56 000 + R30 000 – R14 000
= R72 000
4 INVENTORIES
Trading stock 126 500 – 5 500
Consumable stores on hand 500
121 000
500
121 500
5 TRADE & OTHER RECEIVABLES
Trade debtors 56 000 – 400
Provision for bad debts 1 800 – 138
Net trade debtors
Expenses prepaid
Income accrued (receivable) 3 900
Deposit for water and electricity
55 600
(1 662)
53 938
13 200
3 900
71 038
6 CASH & CASH EQUIVALENTS
Fixed deposit (maturing within 12 months)
Savings account
Bank 80 497 + 1 500 + 18 000
Cash float
Petty Cash
99 997
99 997
7 CAPITAL ACCOUNTS
L LAILA
Balance at beginning of year
Contributions of capital during the year
Withdrawal of capital during the year
Balance at end of year
4
Z ZANELE
Total
900 000
600 000
1 500 000
900 000
600 000
1 500 000
ACC GR11 PARTNERSHIPS
8 CURRENT ACCOUNTS
Net profit as per Income Statement
COMPILED BY MRS S KHAN
L LAILA
Z ZANELE
Total
431 318
369 212
800 530
Partners’ salaries
240 000
240 000
480 000
Interest on capital
90 000
60 000
150 000
Partners’ bonuses
5 000
5 000
10 000
Primary distribution of profit
335 000
305 000
640 000
Final distribution of profit
96 318
64 212
160 530
Drawings for the year
(288 000)
(272 500)
(560 500)
Undrawn profits for the year
143 318
96 712
240 030
Balance at beginning of year
125 000
(5 500)
119 500
Balance at end of year
268 318
91 212
359 530
9 TRADE & OTHER PAYABLES
Trade creditors 119 800
Expenses accrued (payable)
Income received in advance (deferred)
Creditors for salaries 10 000 – 1 800 – 750 – 980 – 100
Pension Fund 7,5% X R10 000 = 750 + 1 125
119 800.
1 400
17 600
6 370
1 875
Medical Fund 980 + 980
South African Revenue Services(PAYE) 18% X R10 000
UIF 1% X R10 000 = 100 + 100
1 960
1 800
200
151 005
.
5
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
ACTIVITY 5
Z ZAYD AND D DENVER
ZAYDEN TRADERS
INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2015
Note
R
Sales 2 300 000 – 7 900 – 2 400
100
2 400
Cost of sales 575 000 – 600 (
𝑋
)
2 289 700
(574 400)
Gross profit
Other operating income
Rent Income 146 000 – 23 000 [(10 000 x 10) + (11 500 x 2) = 123 000)
Bad debts recovered 2 400 + 2 400
Profit on sale of asset 32 000 + 9 220 – 40 000
1 715 300
129 020
123 000
4 800
1 220
Gross operating income
Operating expenses
Rates 33 000 + 3 000
Water and electricity 36 600 + 1 340
75
1 200
Bad debts 5 500 + 900 (
𝑋
)
100
1
Repairs 12 300 – 300
Telephone 26 717 + 1 520
Stationery 8 400 – 600
Insurance 44 400 – 18 000 (24 000 ÷ 12 X 9)
Salaries and Wages 260 000 + 20 000 + 1 200 + 1 500 + 200 + 200
Bank charges 15 200 + 1 000
Trading stock deficit 64 800 + 600 – 63 000
Depreciation 80 000 + 16 000 + 1 620 + 16 200
Provision for bad debts adjustment 1 623 – 900
Donations
1 844 320
(579 020)
36 000
37 940
6 400
400
1
Operating profit (loss)
Interest income
Profit (loss) before interest expense
Interest expense
Net profit (loss) for the year
12 000
28 237
7 800
26 400
283 100
16 200
2 400
113 820
723
8 000
1
2
6
1 265 300
32 170
1 297 470
(23 670)
1 273 800
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
Z ZAYD AND D DENVER
ZAYDEN TRADERS
BALANCE SHEET AT 28 FEBRUARY 2015
Note
ASSETS
NON-CURRENT ASSETS
Fixed / Tangible assets
Financial assets – MM Bank (6% p.a.) 350 000 – 100 000
3
CURRENT ASSETS
Inventories
Trade & other receivables
Cash & cash equivalents
4
5
6
TOTAL ASSETS
R
2 475 800
2 225 800
250 000
388 260
63 600
75 977
248 683
2 864 060
EQUITY & LIABILITIES
OWNER’S EQUITY
Capital
Current accounts
7
8
NON-CURRENT LIABILITIES
Loan from Fund Bank (12% p.a.) 156 000 – 36 000 / 134 400 + 21 600 – 36 000
Loan from
CURRENT LIABILITIES
Trade & other payables
Bank overdraft
Current portion of loan
2 583 800
1 760 000
823 800
120 000
120 000
8
160 260
124 260
36 000
TOTAL EQUITY & LIABILITIES
2 864 060
Z ZAYD AND D DENVER
ZAYDEN TRADERS
NOTES TO THE FINANCIAL STATEMENTS AT
1 INTEREST INCOME
On fixed deposit 14 000 + 5 500
(
6
100
𝑋
300 000
1
𝑋
12
12
)+(
6
100
𝑋
50 000
1
19 500
𝑋
6
12
) = 18 000 + 1 500 = 19 500
On savings account
On current account8 400 + 70
On overdue debtors 4 200
8 470
4 200
32 170
2 INTEREST EXPENSE
On loans from 21 600 (45 600 + 156 000 – 180 000)
On overdraft1 600
On overdue creditors 470
21 600
1 600
470
23 670
7
ACC GR11 PARTNERSHIPS
3 FIXED/TANGIBLE ASSETS
Land &
buildings
1 600 000
Carrying value beginning of year
Cost
Accumulated depreciation
Movement
Additions
Disposals at carrying value
40 000 – 9 220
Depreciation 80 000 + 16 000
1 620 + 16 200
Carrying value at end of year
Cost 400 000 + 320 000
240 000 – 40 000
Accumulated depreciation
144 000 + 96 000
45 600 + 1 620 – 9 220 + 16 200
Vehicles
20
400 000 12
𝑋
𝑋
= 𝑅80 000
100
1
12
20
320 000
3
𝑋
𝑋
= 𝑅16 000
100
1
12
= R96 000
COMPILED BY MRS S KHAN
Vehicles
1 600 000
Total
256 000
194 400
2 050 400
400 000
(144 000)
240 000
(45 600)
2 240 000
(1189 600)
320 000
320 000
(30 780)
(30 780)
(17 820)
145 800
(113 820)
2 225 800
200 000
2 520 000
(294 200)
(96 000)
1 600 000
1 600 000
480 000
720 000
(240 000)
(54 200)
Asset Disposal
Equip
Profit
Equipment
40 000
1 220
Equipment
Bank
32 000
Acc dep 9 220
R40 000 – 7 600 = R32 400
10
32 400
6
𝑋
𝑋
= 𝑅1 620
100
1
12
R7 600 + R1 620 = R9 220
Bal
240 000
Bal
240 000
200 000
Asset
Disposal 40 000
Bal
200 000
240 000
R200 000 – R38 000 = R162 000
10
162 000 12
𝑋
𝑋
= 𝑅16 200
100
1
12
4 INVENTORIES
Trading stock 64 800 + 600 – 2 400
Consumable stores on hand
Accumulated depreciation on
equipment
Asset
Bal
45 600
Disposal 9 220 Dep
1 620
Dep
16 200
45 600 + 1 620 – 9 220
= R38 000
63 000
600
63 600
5 TRADE & OTHER RECEIVABLES
Trade debtors 56 200 – 2 400 – 900 + 1 200
3
54 100
Provision for bad debts 900 + 723 (
𝑋
= 𝑅1 623)
100
1
Net trade debtors
Expenses prepaid 18 000
Income accrued (receivable) 5 500
Deposit for water and electricity
54 100
(1 623)
52 477
18 000
5 500
75 977
6 CASH & CASH EQUIVALENTS
Fixed deposit (maturing within 12 months)
Savings account
Bank 116 413 + 32 000 + 2 400 + 70 – 1 000 – 1 200
Cash float
Petty Cash
100 000
148 683
248 683
8
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
7 CAPITAL ACCOUNTS
Balance at beginning of year
Contributions of capital during the year
Withdrawal of capital during the year
Balance at end of year
Z ZAYD
800 000
160 000
D DENVER
800 000
Total
1 600 000
160 000
960 000
800 000
1 760 000
8 CURRENT ACCOUNTS
Net profit as per Income Statement
Z ZAYD
689 040
D DENVER
584 760
Total
1 273 800
Partners’ salaries
300 000
300 000
600 000
Interest on capital
70 400
64 000
134 400
Partners’ bonuses
25 000
25 000
50 000
Primary distribution of profit
395 400
389 000
784 400
Final distribution of profit
293 640
195 760
489 400
Drawings for the year
(380 000)
(324 000)
(704 000)
Undrawn profits for the year
309 040
260 760
569 800
Balance at beginning of year
144 000
110 000
254 000
Balance at end of year
453 040
370 760
823 800
Salaries
Interest on Capital
Bonus
Ratio 3 : 2
ZAYD
25 000 X 12 = R300 000
DENVER
R300 000
R25 000
R489 400 ÷ 5 X 3 = R293 640
R25 000
R489 400 ÷ 5 X 2 = R195 760
8
800 000
6
𝑋
𝑋
= 𝑅32 000
100
1
12
8
960 000
6
𝑋
𝑋
= 𝑅38 400
100
1
12
= R70 400
8
800 000 12
𝑋
𝑋
= 𝑅64 000
100
1
12
9 TRADE & OTHER PAYABLES
Trade creditors 72 600 – 300
Expenses accrued (payable) 1 520 + 3 000 + 1 340
Income received in advance (deferred) 23 000
Creditors for salaries 20 000 – 3 600 – 1 500 – 800 – 200
Pension Fund 1 500 + 1 500
72 300
5 860
23 000
13 900
3 000
Medical Fund 800 + 1 200
South African Revenue Services(PAYE) 3 600
UIF 200 + 200
SDL 2 000
2 000
3 600
400
200
124 260
.
9
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
ACTIVITY 6
INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2015
Note
R
Sales 2 635 650 – 67 650 – 15 000
Cost of sales 1 544 400 – 12 000
Gross profit
Other operating income
Provision for bad debts adjustment 675 -675
Rent Income 79 800 – 9 975
9 975 X 7 =
Bad debts recovered
Profit on sale of asset 36 000 + (102 000 + 2475) – 135 000
Gross operating income
Operating expenses
Stationery 22 530 – 3 120
Repairs to building 12 900 + 15 000
Bad debts 3 630
Pension fund contribution 19 200 + 900
Telephone 11 100 + 1 900
Insurance 13 830 – 4 800
7 200 ÷ 6 = 1 200 X 4 = R4 800
Salaries 259 200 + 7 200 + 72 + 72
Bank charges 14 130
Trading stock deficit
231 900 + 12 000 + 8 400 = 252 300 – 239 700
Provision for bad debts
Depreciation 43 200 + 2 475 + 55 620
20
216 000
12
𝑋
𝑋
= 43 200 / 135 000 – 102 000 = 33 000
100
15
1
33 000
2 553 000
(1 532 400)
1 020 600
76 800
0
69 825
1 500
5 475
1 097 400
(488 404)
19 410
27 900
3 630
20 100
13 000
9 030
266 544
14 130
12 600
765
101 295
12
6
𝑋
𝑋
= 2 475 / 540 000 – 135 000 = 405 000
100
1
12
136 200 + 2 475 – (102 000 + 2 475) = 34 200
15
370 800
12
405 000 – 34 200 = 370 800
𝑋
𝑋 = 55 620
100
1
12
Operating profit (loss)
Interest income
Profit (loss) before interest expense
Interest expense
Net profit (loss) for the year
608 996
9 570
618 566
(54 000)
564 566
1
2
BALANCE SHEET AT 28 FEBRUARY 2015
ASSETS
NON-CURRENT ASSETS
Fixed / Tangible assets
Financial assets GP Bank 90 000
Note
CURRENT ASSETS
Inventories
Trade & other receivables
Cash & cash equivalents
TOTAL ASSETS
10
R
3
1 648 680
1 558 680
90 000
4
5
6
390 030
242 820
99 210
48 000
2 038 710
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
EQUITY & LIABILITIES
OWNER’S EQUITY
Capital
Current accounts
1 652 456
1 050 000
602 456
7
8
NON-CURRENT LIABILITIES
Loan from SA Bank 186 000 + 54 000 – 60 000
Loan from
180 000
180 000
CURRENT LIABILITIES
Trade & other payables
Bank overdraft
Current portion of loan
TOTAL EQUITY & LIABILITIES
206 254
146 254
8
60 000
2 038 710
NOTES TO THE FINANCIAL STATEMENTS AT
1 INTEREST INCOME
On fixed deposit 13 500 X
6
6 750
12
On savings account
On current account 2 820
On overdue debtors
2 820
9 570
2 INTEREST EXPENSE
On loans from 240 000 + 114 000 – 300 000
On overdraft
On overdue creditors
54 000
54 000
3 FIXED/TANGIBLE ASSETS
Carrying value beginning of year
Cost
Accumulated depreciation
Movement
Additions
Disposals at carrying value
135 000 – (102 000 + 2 475)
Depreciation 43 200
2 475 + 55 620
Carrying value at end of year
Cost 1 140 000 – 15 000
540 000 – 135 000
Accumulated depreciation
(136 200 + 58 095 – 104 475)
54 300 + 43 200)
Land &
buildings
1 125 000
1 125 000
Vehicles
Equipment
403 800
161 700
1 690 500
540 000
(136 200)
216 000
(54 300)
1 881 000
(190 500)
(43 200)
(30 525)
( 101 295)
118 500
216 000
1 558 680
1 746 000
(30 525)
1 125 000
1 125 000
Total
(58 095)
315 180
405 000
(89 820)
(187 320)
(97 500)
4 INVENTORIES
Trading stock 231 900 + 12 000 + 8 400 = 252 300 – 12 600
Consumable stores on hand
239 700
3 120
242 820
11
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
5 TRADE & OTHER RECEIVABLES
Trade debtors 107 550 – 15 000 + 1 500
Provision for bad debts 4 950 + 765 + 675
Net trade debtors
Expenses prepaid 9 030
Income accrued (receivable) 6 750
Deposit for water and electricity
94 050
(6 390)
87 660
9 030
6 750
0
103 440
6 CASH & CASH EQUIVALENTS
Fixed deposit (maturing within 12 months)
Savings account
Bank 48 000
Cash float
Petty Cash
48 000
48 000
7 CAPITAL ACCOUNTS
Balance at beginning of year
Contributions of capital during the year
Withdrawal of capital during the year
Balance at end of year
B BUKIWE
450 000
150 000
600 000
(150 000)
450 000
Total
1 050 000
150 000
(150 000)
1 050 000
8 CURRENT ACCOUNTS
Net profit as per Income Statement
B BUKIWE
279 283
C CHAND
285 283
Total
564 566
Partners’ salaries
144 000
144 000
288 000
Interest on capital
84 000
90 000
174 000
Partners’ bonuses
6 000
6 000
12 000
Primary distribution of profit
234 000
240 000
474 000
Final distribution of profit
45 283
45 283
90 566
Drawings for the year
(150 000)
(159 000)
(309 000)
Undrawn profits for the year
129 283
126 283
255 566
Balance at beginning of year
226 020
120 870
346 890
Balance at end of year
355 303
247 153
602 456
Interest on Capital
16
100
B Bukiwe
450 000
6
𝑋
𝑋
= 36 000
16
100
1
𝑋
12
600 000
1
𝑋
16
100
6
= 48 000
12
= 84 000
𝑋
C CHAND
600 000
600 000
1
C Chand
9
𝑋 = 72 000
12
16
100
𝑋
450 000
1
𝑋
3
12
= 18 000
= 90 000
9 TRADE & OTHER PAYABLES
Trade creditors 117 735 + 8 400
Expenses accrued (payable) 1 900
Income received in advance (deferred) 9 975
Creditors for salaries 7 200 – 1 440 – 600 – 72
Pension Fund 600 + 900
126 135
1 900
9 975
5 088
1 500
Medical Fund
South African Revenue Services(PAYE) 1 440
UIF 72 + 72
SDL 72
0
1 440
144
72
146 254
12
ACC GR11 PARTNERSHIPS
COMPILED BY MRS S KHAN
13