2019 Bafnx 4A & Bafex 4A - B-Techs Practice Exercisefinancial statements PDF

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by dr sibanda...

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Question 1 [20 marks] The following trial balance was expected from the books of Vaal Triangle Limited as at 31 December 2017

Land and Building Motor Vehicles at cost Furniture at cost Acc. Depreciation: Motor vehicle Acc. Depreciation: Furniture Fixed deposit: Vaal Investments Long-term Loan Accounts Receivable Inventories 01/01/17 Bank balance Cash on hand Accounts payable Sales Purchases Discount allowed Salaries and wages Telephone Water and rates Electricity Sales returns Postage and stationary Insurance expense Rent paid General expenses Interest received from investments Interest paid Discount received Ordinary share capital Preference share capital

Debit 2 400 000 1 200 000 400 000

Credit

400 000 100 000 480 000 1 000 000 240 000 100 000 72 000 24 000 444 000 4 420 000 2 400 000 56 000 320 000 64 000 24 000 56 000 20 000 32 000 48 000 36 000 20 000 36 000 24 000

8 016 000

16 000 1 200 000 400 000 8 016 000

Additional Information a. Closing stock as at 31 December 2017 isR120 000 b. Depreciation on Motor Vehicles is 20% per annum on reducing balance method and 10% per annum on furniture straight line method. c. Wages still outstanding as at 31 December 2017 amounted to R8000 d. The company has to pay 28% per annum as corporation tax. Required: i. Prepare the comprehensive Income Statement for the year ended 31 December 2017 [10 marks] ii. Prepare the statement of the financial position (Balance Sheet) as at 31 December 2017 [10 marks]

Comprehensive Income Statement for the period ending 31 December 2012 (31/31x10marks) Sales 4 420 000 Less Sales return 20 000 Net Sales 4 400 000 Less Cost of sales 2 380 000 Opening Stock 100 000 Plus purchases 2 400 000 Less Closing Stock 120 000 Gross Profit 2 020 000 Add Other Income 52 000 Interest on Investment 36 000 Discount received 16 000 Total Income 2 072 000  Less Operating expenses 864 000 Salaries and wages (320 000+8 000) 328 000 Telephone 64 000 Water and rates 24 000 Electricity 56 000 Postage and stationary 32 000 Insurance 48 000 Rent paid 36 000 General expenses 20 000 Discount allowed 56 000 Dep: Motor Vehicle 160 000 Dep: Furniture 40 000 EBIT 1208 000 Interest paid 24 000 EBT 1 184 000 Tax (28%) 331 520 EAIT 852 480 Comprehensive statement of financial position at 31 December 2009(28/28x10 marks) Assets Non-current assets Cost Acc. Depn Book Value Land and buildings 2 400 000 2 400 000 Motor Vehicles 1 200 000 560 000 640 000 Furniture 400 000 140 000  260 000 4 000 000 700 000  3 300 000 Fixed Deposit 480 000  Current assets 456 000  Inventories 120 000 Accounts receivable 240 000 Bank balance 72 000 Cash on hand 24 000 Total Assets 4 236 000  EQUITY AND LIABILITIES Capital Ordinary share capital 1 200 000 Preference share capital 400 000 Net profit for the year 852 480 2 452 480  Long-term loan 1 000 000  Current liabilities 783 520 Accounting payable 444 000 Wages outstanding 8 000 Tax outstanding 331 520 Total Equity and Liabilities 4 236 000 ...