MANCOSA BCOM FINANCIAL MANAGEMENT YEAR 1 73 FINANCIAL STATEM

MANCOSA: BCOM FINANCIAL MANAGEMENT YEAR 1 73 FINANCIAL STATEMENTS OF A COMPANY QUESTION 3 REQUIRED use thebensive Income of Selfie Limited for the year ended 28 February 2018. 20) (20) balance, additional information and adjustments given below to prepare the Statement of SELFIE LIMITED PRE- MENT TRIAL BALANCE AS AT 28 FEBRUARY 2018 Debit (R) Credit (R) Balance sheet accounts section Ordinary share capital 416 000 121 700 Retained earnings Land and buildings at cost Equipment at cost Vehicles at cost 480 000 213 000 175 000 Accumulated depreciation on equipment Accumulated depreciation on vehicles 88 000 44 000 Trading invento 45 000 50 000 Debtors control Provision for bad debts Bank overdraft Creditors control Loan: Pano Bank (18% pa) South African Revenue Services (Company tax) Nominal accounts section Sales Cost of sales Sales returns Advertising Stationery Bad debts Discount allowed Discount received Electricity and water 3 000 14600 65 000 50000 42 800 936 000 356 000 24 000 30 000 12 000 2 000 3 000 3 000 37 000 20 000 500 44 000 12 000 7 000 190 000 5 000 Interest on overdraft Directors\' fees Audit fees Salaries Bank charges Rent income 26 000 20000 1 767 300 Municipal rates 1 767 300

Solution

Selfie Limited Income Statement 28 February 2018 Sales 936000 Less Discount Allowed 3000 Less Sales Return 24000 Net Sales 909000 Cost of Good Sold Cost of Sales 356000 Less Discount received 3000 Cost of Good Sold 353000 Gross Profit 556000 Operating Expene Salaries 190000 Electrcity and Water 37000 Telephone 20000 Insurance 7000 Stationery 12000 Advertiment 30000 Bad debt 2000 Interest on overdraft 500 Director fees 44000 Audit fees 12000 Bank Charges 5000 Muncipal rate 20000 379500 Operating Income 176500 Other Income Rental Income 26000 Net Income 150500