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