Mr John Bossis the CEO of JB to AB Mighty Moments Suppliers (Pty) Lty. He has been running
a building material business since its formation on 28 February 2016. Unfortunately, his
inexperienced accountantresigned at the end of the month withoutfinalizing the accounts. Mr
John Boss has requested you as an accounting student to help him meet this requirement by
computerizing his business transactions. All payments and receipts are done electronically.
The company usesa periodic inventory system and processesits transactions exclusive of VAT.Its
records are based on an integrated method and it does not process the following documents;
quotations, sales orders, purchase orders and goods received notes. Its financial year starts on 1
March, it banks with FNB Namibia and keeps a petty cash account with an impress amount of N$7
000. It uses the balance forward processing method and prints its documents on plain single paper.

PART A
Draft list of possible opening balances as at 1 March 2017

Draft list of possible opening balances as at 1 March 2017

Details	Notes	Amount N$000
Financial instruments	1	1 800
Warehouse and office	2	1 850
Fork lift	3	250
Crane	3	700
Warehouse shelves	3	36
Heavy duty copying machine	3	150
Profits/loss from previous years		???
Inventory @ selling price	4	55
Accounts Receivable	5	1 234
Bank (Cr balance as per bank statement)		330
Tiger Brand Ordinary Shares (JSE Listed)		105
Purchases		10 500
Sales		18 800
Power expenses		46.5
Unpaid Income tax		25
Unpaid-Medical Contributions		10.4
Accounts Payable	6	1 050

Discount allowed		0.48
10% Debentures Purchased		250
Discount received		0.53

NB. The average market interest in Namibia is ‘12%.

1. The financial instruments consist of authorized share capital of two million ordinary shares of N$0.75 par value with a market value of N$1.00 per share and seven hundred and fifty 12% Debentures of N$1 000 face value.
2. The property consists of a piece of land and a warehouse. The original cost of the land was one million Namibian dollars while the factory was built for N$850 000 and ready for use on 1st March 2016. The warehouse is subject to a depreciation charge of 10 percent per annum.

• The environmental regulations of the City of Windhoek require that the factory be dismantled, and the land restored to its natural condition after ten years. It is estimated that this will cost the company an amount of N$200 000.All other non-current assets are depreciated using 20% reducing balance method.

3. All assets have a residual value which is equal to 10% of cost and the useful life is five years. The assets were acquired at the business inception date. The company uses the cost model for its non-current assets.

4. The pricing policy of the company is to achieve a twenty percent profit margin.

Inventory on hand	Quantity	Selling price per unit (N$)
Cement — 50 kg bags	250	130.00
Door Frames	50	450.00

• 5. Accounts receivable balances

Account holder	Account number	Amount N$000
NUST	N2016	750
DHP church	D2000	350
IUM	13000	800
UNESCO	U4000	250
Mr. Haufiku & Sons	H2000	???

• 6. Accounts payables

Name	Account number	Amount
		N$000
Mega Build SA	MB200	700
Ohorongo Cement Limited	0C300	280
Build IT	BIT100	???

Required:

Capture the above opening balances including accumulated depreciation as at 1 March 2017. Update all batches before moving to the next question.

No report is required at this stage.