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1 (60 Marks) The following information relates to Tabita Ltd. The financial year ended on 28 February 2023. REQUIRED: 1.1 Refer to Information B. Calculate
1 (60 Marks) The following information relates to Tabita Ltd. The financial year ended on 28 February 2023. REQUIRED: 1.1 Refer to Information B. Calculate the missing amounts denoted by (a) to (e). (22 Marks) 1.2 Refer to Information A to K. Complete the Statement of Financial Position on 28 February 2023. (Show workings) (38 Marks) INFORMATION: A: Amounts extracted from the records on 28 February 2023. Balance sheet accounts section R Ordinary share capital ? Retained income 520,000 Fixed assets (carrying value) ? Loan from BAT Bank 284,000 Trading stock 408,880 Net trade debtors 67,200 Fixed deposit GBS Bank ? Bank (Favorable) ? SARS Income tax (Provisional payments) 209,000 Creditors' control 184,000 Nominal accounts section (pre-adjustment amounts) Insurance 30,200 Rent income 108,450 Electricity 42,000 B: Non-current Assets Land Vehicles Equipment Total Cost 350,000.00 460,000.00 Accumulated depreciation (315,000.00) Carrying value (01/03/2022) (a) 35,000.00 Movements Additions 325,000.00 422,550.00 - Disposal - - (d) Depreciation (b) (13,766.00) Carrying value (28/02/2023) 2,550,000.00 (c ) 50,994.00 (e ) Cost 772,550.00 340,000.00 Accumulated depreciation Depreciation on vehicles is calculated at 20% p.a. on cost. The company has two vehicles on 28 February 2023. One of these vehicles was purchased on 1 September 2022. Extract from the Fixed Assets Register in respect of equipment sold: Fridge (Model X3) Date purchased: 1 March 2020 Date sold: 31 December 2022 Sold for: R81 250 Depreciation rate: 10% p.a. (diminishing-balance method) Cost Depreciation Book Value 28/02/2021 120,000 12,000 108,000 28/02/2022 ? ? 31/12/2022 ? ? C. The electricity account for February 2023, R5 600, was still outstanding. D. The provision for bad debts must be increased by R270. E. An additional insurance policy was taken out on 1 November 2022. The annual premium of R10 200 was paid and recorded. F. The rent for February 2023 has not been received yet. The rent increased by 15% on 1 July 2022. G. Net profit after tax, R518 000, was calculated after taking into account all the adjustments above. Income tax is 30% of the net profit. H. 75% of the authorized share capital of 900 000 shares was in issue. The directors declared a final dividend of 24 cents per share on 28 February 2023. I. Extract from BAT Bank loan statement: Balance (01/03/2022) 376000 Installments (including interest) 92000 Interest capitalized 48000 Balance (28/02/2023) ? NOTE: Interest has not been entered in the books. R50 000 of the loan balance will be settled in the next financial year. J. The net asset value per share on 28 February 2023 is 620 cents. K. The current ratio is 2,1 : 1 on 28 February 2023
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