The following information was extracted from the book of XY Ltd for the year 30 September 2016.Extract of a Trial Balance as 30 September 2016NOMIMAL SECTIONSalesCost of SalesCommissionRentSalariesCarriage on SalesCarriage on PurchasesBad debtsElectricityStationaryBALANCE SHEET SECTIONLand and BuildingShares on JSEDebtorsProvision of bad debtsBankPetty CashOrdinary Share CapitalShare PremiumRetained Earnings- 1 October 2015Long term loanCreditorsDebit (R)1312 500475 120Required:Prepare a Statement of Financial Position as at 30 September 2016.70 000130 40050 00040 00020 00046 500102 400700 00017 050180 6368 000450Credit (R)19 0020 000400 00050 00060 391144 000103 026Additional information:1) An annual stock count at 30 September showed that the business had stock worth R15 150.2)Write off a further R3 500 as bad debts.3) Adjust the provision of bad debts to R23 500.4) Profit for the year was R84 193.5) Income tax was provided for as R52 576. It is a business for tax to be paid on the 1st ofOctober each year.6) Dividends declared were R5 000.NB: Notes are not required. The statement must be prepared in accordance with GAAP IFRS.

According to the given question, we are required to prepare the financial position of the company in…

Additional information: 1) An annual stock count at 30 September showed that the business had stock worth R15 150. 2) Write off a further R3 500 as bad debts. 3) Adjust the provision of bad debts to R23 500. Profit for the year was R84 193. Income tax was provided for as R52 576. It is a business for tax to be paid on the 1st of October each year. 6) Dividends declared were R5 000. 4) 5) Required: Prepare a Statement of Financial Position as at 30 September 2016. NB: Notes are not required. The statement must be prepared in accordance with GAAP or IFRS.

Additional information: 1) An annual stock count at 30 September showed that the business had stock worth R15 150. 2) Write off a further R3 500 as bad debts. 3) Adjust the provision of bad debts to R23 500. Profit for the year was R84 193. Income tax was provided for as R52 576. It is a business for tax to be paid on the 1st of October each year. 6) Dividends declared were R5 000. 4) 5) Required: Prepare a Statement of Financial Position as at 30 September 2016. NB: Notes are not required. The statement must be prepared in accordance with GAAP or IFRS.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6PB: Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable....

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