Here are the post-closing trial balances of Pine Oak Ltd as at 30 June 20x4 and 30 June 20x5:

Additional information:
1. In March 20x5, the company sold a vacant stand that cost R5 000 for R10 000 cash and had the remaining property revalued by a sworn appraiser. The directors decided to show the property in the books at the increased value.

2. Included in the profit before tax is interest paid of R3 000, and interest received of R1 800.

3. Revenue for the year amounted to R168 000.

4. During July 20x4, the company purchased additional plant and traded in this asset in part settlement of the purchase price of the plant.

The company does not depreciate non-current assets sold during the year.

5. Profit and loss account for the year ended 30 June 20x5:

6 During January 20x5, the company issued the balance of its shares.

– Issue expenses of R5 375 were incurred.

– In terms of a directors’ resolution, the issue expenses must be written off.

You are required to:

Prepare the statement of cash flows and notes for the year ended 30 June 20x5.

Transcribed Image Text:

Credits Authorised and issued ordinary shares Authorised and issued 6% preference shares Surplus on revaluation of land and buildings Retained earnings 8% mortgage bond Accounts payable Bank overdraft Proposed ordinary dividend Taxation provision Accumulated depreciation: Plant Accumulated depreciation: Vehicles Debits Goodwill Land and buildings (at cost/valuation) Plant (at cost) Vehicles (at cost) Inventory Accounts receivable Share issue expenses Cash at bank 20x4 125 000 00 57 500 00 0 00 7 910 00 47 500 00 45 240 00 4 200 00 2 500 00 1 050 00 30 000 00 8 000 00 328 900 00 8 000 00 100 000 00 76 000 00 21 000 00 71 400 00 52 500 00 0 00 0 00 00 328 900 20x5 250 000 00 50 375 00 25 000 00 11 110 00 10 000 00 12 600 00 0 00 5 000 00 2 100 00 39 000 00 9 980 00 00 415 165 0 00 120 000 00 97 000 00 24 800 00 94 000 00 51 000 00 5 375 00 22 990 00 415 165 00