How often Financial statements of a sole trader is asked

Where it was asked

• May/Jun 201435 marks
• May/Jun 201333 marks

The questions

1. May/Jun 2014, Q1.120 marks

   YoCo Stores' pre-adjustment trial balance at 31 May 2013: capital (amount not given); drawings R5 000; fixed deposit R30 000; land and buildings at cost R150 000; furniture at cost R45 000; mortgage R30 000; bank R4 700 (favourable); trading inventory (1 June 2012) R12 000; creditors control R7 300; debtors control R5 400; revenue from sales R92 100; purchases R35 000; purchases returns R825; rental income R3 600; bank charges R100; insurance R2 000; credit losses R150; settlement discount granted R250; municipal taxes R600; salaries and wages R12 900; carriage on purchases R720; carriage on sales R450; customs duties on purchases R125; packing material R1 395; interest on mortgage R3 025. Additional information: the owner paid an extra R50 000 into the business bank account on 1 March 2013; furniture bought on 30 June 2012 is depreciated at 20% p.a. straight-line and no depreciation has been provided; the fixed deposit at Dry Bank (invested 1 June 2012, callable 31 May 2018) earns 10% p.a. and the year's interest must still be provided; on 1 January 2013 the owner took inventory costing R2 500 and nothing was recorded; inventory on hand at 31 May 2013 is R14 500 and packing material R95; an allowance for credit losses of R400 must be created; the insurance figure includes an annual premium of R1 800 paid on 1 August 2012; part of the building has been let to an attorney at R400 per month since 1 January 2012; the secretary's May 2013 salary of R6 000 is unpaid; the mortgage from XYZ Bank bears interest at 11% p.a. payable monthly in arrears, May's interest is still outstanding, and R5 000 of the mortgage is repayable on 31 December 2013. Prepare the statement of profit or loss and other comprehensive income for the year ended 31 May 2013 in line with IFRS.

2. May/Jun 2014, Q1.25 marks

   Using the YoCo Stores information, prepare the statement of changes in equity for the year ended 31 May 2013.

3. May/Jun 2014, Q1.310 marks

   Using the YoCo Stores information, prepare the equity and liabilities section of the statement of financial position as at 31 May 2013, in line with IFRS.

4. May/Jun 2013, Q1.129 marks

   Mill Traders' pre-adjustment trial balance as at 30 June 2012 reflects the following balances: Capital R202 000 (credit); Drawings R27 000 (debit); Debtors control R18 560 (debit); Vehicles at cost R202 100 (debit); Accumulated depreciation on vehicles R19 100 (credit); Trading inventory as at 1 July 2011 R28 300 (debit); Bank R56 520 (debit); Mortgage loan R105 000 (credit); Loan from Africa Bank (at 19,5% per annum) R15 000 (credit); Sales R272 195 (credit); Carriage on purchases R750 (debit); Import duty on purchases R782 (debit); Insurance on purchases R329 (debit); Commission income R18 000 (credit); Depreciation R19 100 (debit); Insurance R8 575 (debit); Packaging materials R4 600 (debit); Purchases R190 800 (debit); Purchases returns R245 (credit); Rent income R6 500 (credit); Sales returns R1 860 (debit); Settlement discount granted R465 (debit); Settlement discount received R225 (credit); Telephone R2 420 (debit); Carriage on sales R1 250 (debit); Repairs R2 160 (debit); Petrol R3 479 (debit); Wages R64 115 (debit); Water and electricity R5 100 (debit). Both the debit and credit columns total R638 265. The following additional information must also be taken into account: (1) on 1 July 2012 the trading inventory balance was R22 750; (2) rental income for the year should actually have been R6 000; (3) packaging material on hand at 30 June 2012 amounted to R1 200; (4) commission income of R3 600 is still outstanding; (5) water and electricity of R500 is still owing; (6) the mortgage loan was obtained from XYZ Bank and carries interest at 11,5% per annum, and the current year's interest still needs to be provided for; (7) the loan from Africa Bank is unsecured and the current year's interest on it must also still be provided for; (8) a debtor owing the business R4 640 was declared insolvent and this account must be written off as irrecoverable; and (9) the insurance figure given includes premiums already paid for July and August 2012. Using the pre-adjustment trial balance of Mill Traders as at 30 June 2012 and the additional information provided (relating to closing inventory, rental income, packaging materials on hand, outstanding commission income, water and electricity owing, mortgage loan and Africa Bank loan interest still to be provided for, the debtor written off as irrecoverable, and the prepaid insurance), prepare the statement of profit or loss and other comprehensive income of Mill Traders for the year ended 30 June 2012. All calculations must be shown.

5. May/Jun 2013, Q1.24 marks

   Mill Traders' pre-adjustment trial balance as at 30 June 2012 reflects the following balances: Capital R202 000 (credit); Drawings R27 000 (debit); Debtors control R18 560 (debit); Vehicles at cost R202 100 (debit); Accumulated depreciation on vehicles R19 100 (credit); Trading inventory as at 1 July 2011 R28 300 (debit); Bank R56 520 (debit); Mortgage loan R105 000 (credit); Loan from Africa Bank (at 19,5% per annum) R15 000 (credit); Sales R272 195 (credit); Carriage on purchases R750 (debit); Import duty on purchases R782 (debit); Insurance on purchases R329 (debit); Commission income R18 000 (credit); Depreciation R19 100 (debit); Insurance R8 575 (debit); Packaging materials R4 600 (debit); Purchases R190 800 (debit); Purchases returns R245 (credit); Rent income R6 500 (credit); Sales returns R1 860 (debit); Settlement discount granted R465 (debit); Settlement discount received R225 (credit); Telephone R2 420 (debit); Carriage on sales R1 250 (debit); Repairs R2 160 (debit); Petrol R3 479 (debit); Wages R64 115 (debit); Water and electricity R5 100 (debit). Both the debit and credit columns total R638 265. The following additional information must also be taken into account: (1) on 1 July 2012 the trading inventory balance was R22 750; (2) rental income for the year should actually have been R6 000; (3) packaging material on hand at 30 June 2012 amounted to R1 200; (4) commission income of R3 600 is still outstanding; (5) water and electricity of R500 is still owing; (6) the mortgage loan was obtained from XYZ Bank and carries interest at 11,5% per annum, and the current year's interest still needs to be provided for; (7) the loan from Africa Bank is unsecured and the current year's interest on it must also still be provided for; (8) a debtor owing the business R4 640 was declared insolvent and this account must be written off as irrecoverable; and (9) the insurance figure given includes premiums already paid for July and August 2012. Using the same trial balance and additional information for Mill Traders as at 30 June 2012, prepare the statement of changes in equity of Mill Traders for the year ended 30 June 2012.