ADJUSTMENTS AND ADDITIONAL INFORMATION 1….
ADJUSTMENTS AND ADDITIONAL INFORMATION 1. Credit sales to D. Maslaba for R17 000 was not recorded. Cost of sales amounts to R10 000. 2. Stock on hand according to the physical stocktaking on 28 February 2019: ● Trading stock, R70 900 ● Packing material, R2 700 3. Depreciation on fixed assets amounts to R48 700 for the year. 4. N. Mokoena, a debtor, was declared insolvent. His outstanding balance of R4 500 must be written off as irrecoverable. 5. The provision for bad debts must be adjusted to R2 600. 6. The water and electricity account for February 2019 was received from the municipality, R1 600. No entry was made. 7. Insurance expense includes an annual premium of R3 600 paid for the period 1 November 2018 to 31 October 2019. 8. The Bank statement from Bank of Africa reflected the following on 28 February 2019: ● Bank charges R745 and interest on current account R225. ● Unpaid cheque of a debtor (in settlement of a debt of R950) R910 9. Interest on fixed deposit was only received for 9 months. The fixed deposit was unchanged during the financial year. Interest is not capitalised. 10. Rent income includes rent for March 2019. Note that rent was increased by 10% on 1 September 2018. 11. The loan statement received from the Bank of Africa: Balance on 1 March 2018 R 280 000 Capitalised interest ? Repayments during the year including interest 95 000 Balance on 28 February 2019 220 000 Interest is capitalized. 12. Advertising consists of an annual contract with the newspaper for the entire financial year. Advertising was paid for 11 months only. From 1 November 2018, the contract rate was decreased by R450 per month.