Cost and Management Accounting Assignment

Assignment Task

Questions

1. Prepare the following accounts as they would appear in the General Ledger of Fruitful Traders on 28 February 2023, the last day of the financial year.

The accounts should be balanced/or closed off.

• Vehicles
• Accumulated depreciation on vehicles
• Asset Disposal

Information

1. Balances for the 2022 and 2023 accounting periods:

2. Sold one of the vehicles, which originally cost R75 000, for R45 000 cash on 28 February 2023. The accumulated depreciation on this vehicle was R28 500 on 1 March 2022.

3. The policy for depreciation on vehicles is 20% p.a. on the diminished balance method.

4. A vehicle was purchased on 1 December 2022 from Victorious Motors on credit.
Vinecles

On 30 June 2023, the Trade receivable control account in the general ledger of VP Stores showed a debit balance of R9 640, while the Trade receivable list (debtors list) showed a total of R7 555. The following errors and omissions were found:

1. The trade receivable list was overcast by R720.

2. The balance of a trade receivable (a debtor) was omitted from the trade receivable list, R265. debit

3. The balance on an account of a trade receivable (a debtor), R400 was brought down incorrectly as R40. 360

4. The amount on an invoice issued to Thabo Manaka was miscalculated. The amount should not be R860, but R680.

5. Payments to trade payables (creditors) as per the cash payment journal were debited to the trade receivable control account, R4 760. 1

6. The sales journal was undercast and posted accordingly. The total should have been, R5 240 and not R2 540. 2700 Debt
Debit

7. A credit note for R255 was recorded but not posted to the trade receivable (debtor) personal account.

8. The account of a trade receivable (the debtor) was balanced incorrectly. The balance should have been R463 and not R383.

9. A credit note for R194 was recorded correctly in the sales returns journal but was posted to the personal account of a trade receivable (debtor) as R149.
45 credit

10. A credit note for R640 was recorded in the sales returns journal as R640 and posted incorrectly to the trade receivable (debtor) account as R460. dit

11. A cheque for R550 received from J. Judy was posted to the account of J. Julie.

12. An invoice of R260 in the sales journal was posted to the credit side of T. Koos's account in the trade receivable account (debtor).

Adjustment

1. The owner took inventory for personal use. R600 (Cost Price) This transaction was not recorded in the books

2. A dissatisfied customer 5. Ukraine returned to inventory with of R900. The mark-up on cost is 100% This transaction was not recorded EWC price

3. A fire in the shop destroyed inventory costing R4 400 BBC Insurers wi pay out only R3 500. The insurance payout has not yet been received

4. The following items were counted at year-end Trading inventory, R64 300 Lfict Consumables stores, R520 (for cleaning)
Packing material, R700-300 300

5. Provide for interest on loan. Annual repayments of R10 000 are made each year on 31 December

6. Interest of R120 is receivable for the full year on the savings account. while interest on the fixed deposit had been paid quarterly in advance Adjust accordingly

7. The business is owed a commission of R600 on the sale of shoe polish

8. Stationery costing R120 has been paid for but has not yet been delivered to Stronger Traders

9. Provide for depreciation on equipment at 10% pa. on cost. Note that the equipment costing R12 000 was purchased from B. Blue on 01 February 2022 and has not yet been recorded in the purchases journal

10. A debtor (trade receivable) M. Nkosi with a credit balance of R270 must be transferred to the trade payables ledger.

11. Credit losses of R800 must be written off the account of M. Sithole and the allowance for credit losses must be adjusted to R2 900

12. Repairs to the buildings of R3 000 have been debited to the land and buildings account in error.

Required

1. Prepare the statement of profit and loss and other comprehensive income for the year ended 28 February 2022

2. Prepare the statement of changes in equity for the year ended 28 February 2022

3. Prepare the following notes for the statement of financial position:

4. Property, equipment, and vehicles.

5. Trade and other receivables

6. Trade and other payables

This Management Accounting has been solved by our PHD Experts at My Uni Paper.