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Prepare the Statement of Financial Position as at 28 February 2022. The notes to the financial statements are not required.

**INFORMATION:**

The trial balance, adjustments, and additional information below were extracted from the accounting records of Woodford Limited for the financial year ended 28 February 2022.

**WOODFORD LIMITED: PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022**

| Debit (R) | Credit (R) |
|-----------------------|----------------------|
| **Balance sheet accounts section** | |
| Capital | 1,000,000 |
| Retained earnings | 300,000 |
| Land and buildings | 878,000 |
| Vehicles at cost | 572,000 |
| Equipment at cost | 480,000 |
| Accumulated depreciation on vehicles | 384,000 |
| Accumulated depreciation on equipment | 168,000 |
| Fixed deposit: Fin Bank (9% p.a.) | 144,000 |
| Trading inventory | 123,000 |
| Debtors control | 146,000 |
| Provision for bad debts | 8,000 |
| Bank | 120,000 |
| Cash float | 7,000 |
| South African Revenue Services: Company tax | 30,000 |
| Creditors control | 134,000 |
| Mortgage loan: Fin Bank (12% p.a.) | 240,000 |
| **Nominal accounts section** | |
| Sales | 1,635,000 |
| Cost of sales | 432,000 |
| Sales returns | 9,000 |
| Salaries and wages | 427,000 |
| Bad debts | 13,000 |
| Stationery | 21,000 |
| Rates and taxes | 57,000 |
| Motor expenses | 96,000 |
| Directors’ fees | 120,000 |
| Audit fees | 20,000 |
| Repairs to building | 17,000 |
| Telephone | 32,000 |
| Electricity and water | 48,000 |
| Bank charges | 6,000 |
| Insurance | 62,000 |
| Interest on mortgage loan | 19,000 |
| Interest on fixed deposit | 10,000 |

**Total:** | **3,879,000** | **3,879,000** |

**ADJUSTMENTS AND ADDITIONAL INFORMATION:**

1. The telephone account for February 2022 was due to be paid on 03 March 2022, R4,000.
2. A debtor, P. Martin, was declared insolvent. His account must now be written off, R3,000.
3. Stocktaking on 28 February 2022 revealed the following on hand:
- Trading inventory: R121,000
- Stationery: R1,000
4. The provision for bad debts must be increased by R700.
5. Directors’ fees unpaid amounted to R14,000.
6. The insurance total includes an amount of R6,000 that was paid for the next accounting period.
7. Provide for the outstanding interest on the mortgage loan, R9,800. Interest is not capitalised. Loan repayments (excluding interest) totalling R30,000 are expected to be made in the next financial year.
8. Provide for outstanding interest on fixed deposit. Interest is not capitalised. The investment in fixed deposit was made on 01 March 2021 and it matures on 28 February 2024.
9. Provide for depreciation as follows:
- On equipment: R72,000
- On vehicles: R37,600
10. Company tax for the financial year ended 28 February 2022 amounted to R39,860.
11. The profit after tax for the year ended 28 February 2022 amounted to R93,000, AFTER the above was taken into account.
12. A final dividend of 80 cents per share was declared by the directors.

Answer :

The Statement of Financial Position or Balance sheet is an accounting report that lists an organization's assets, liabilities, and shareholder equity at a specified point in time.

Below is the statement of financial position for Woodford Limited as at 28 February 2022.Statement of Financial Position for Woodford Limited as at 28 February 2022Assets(R)Non-current assets Land and buildings878,000Vehicles at cost572,000Equipment at cost480,000Less accumulated depreciation(552,000)Total non-current assets1,378,000Current assets .

Trading inventory121,000Debtors control146,000Less provision for bad debts(10,000)Stationery1,000Bank120,000Cash float7,000.Total current assets285,000Total assets1,663,000Equity and Liabilities(R)Capital1,000,000Retained earnings393,000Total equity1,393,000Non-current liabilities Mortgage loan240,000Outstanding interest9,800.

Total non-current liabilities249,800Current liabilities Creditors control134,000Telephone4,000Rates and taxes57,000Motor expenses96,000Directors’ fees unpaid14,000Audit fees20,000Repairs to building17,000Electricity and water48,000Bank charges6,000Total current liabilities446,000.

Total equity and liabilities1,663,000Explanation:Financial position refers to an organization's financial health. It encompasses the ability of the firm to settle its obligations in the short term and its overall fiscal health. Repairs to the building are a current liability, as they are expected to be paid within a year.

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