Vargas Tucker

06/17/2024 · Middle School

The trial balance of Nixit Ltd was prepared by the junior bookkeeper for the financial year ended 31 August 2023. Account Debit Credit Municipal charges 26 800 Telephone and communication 23 400 Rental expenses 39 000 Credit losses 1 500 Interest received 14 400 Consulting charges 495 000 Sale of goods 1 548 000 Cost of sales 630 000 Printing and stationery 22 800 Director fees 28 000 Salaries and wages 215 000 Interest on loan 12 000 Penalties and fines 1 500 Cleaning fees 6 400 Computer expenses 4 800 Capital 110 000 Retained income 25 800 Creditors control 52 000 Computer equipment 198 000 Accumulated depreciation on computer equipment 59 800 Investment property 376 100 Debtors control 148 000 Allowance for credit losses 23 000 Inventory: Raw material 54 800 Inventory: Stationery 14 000 Motor vehicles 250 000 2 Accumulated depreciation on motor vehicles 34 000 Office equipment 159 000 Accumulated depreciation on office equipment 41 500 10% Loan 160 000 Investment 185 000 Cheque account: FNB 167 400 2 563 500 2 563 500 Additional information: (a) Depreciation has not been recorded on property, plant and equipment. Motor vehicles are depreciated on the reducing balance method at 20%. Computer equipment of R85 000 was purchased on 1 February 2023, replacing older items initially purchased for R48 000 on 1 November 2019. Office equipment of R27 000 was purchased on 31 December 2022. Computer equipment and office equipment depreciates on the straight-line basis at 25% and 10% respectively. (b) Mr. Roy returned faulty goods of R8 100. Nixit Traders applies a 50% markup on finished products. (c) The company allows a 2,5% discount for accounts settled within 30 days. Mrs. Redkin purchased goods of R58 000 on a 30-day account on 1 August 2023. The account was paid on 27 August 2023, but the bookkeeper neglected to record the discount in all affected accounts. (d) The water and electricity account of R1 500 was received on 21 September 2023. (e) Artwork of R2 500 was donated to Nixit Limited but not recorded. (f) Professional work completed but not yet invoiced at year-end amounts to R5 000. (g) A delivery truck was purchased on 1 December 2022 for R120 000 with an estimated residual value of R35 000. No vehicles were sold during the year. (h) Rental for September 2023 was paid on 12 August 2023. (i) The company is taxed at 28%. Required: Prepare the Statement of Comprehensive Income of Nixit Limited for the year ended 31 August 2023. Detail all calculations.