1 Given information for questions 1, 2, 3, 4, 5 and 6: The following information pertains to YBlue ended 31 July 2020: Close Corporation for the financial year 1. EXTRACT of balances at 31 July 2020 R Member's contribution: Y Yellow 270 000 Member's contribution: B Blue 110 000 Retained earnings (31 July 2019) 24 950 Revaluation reserve 34 000 Loan from Y Yellow 85 000 Loan to B Blue 60 000 Interim profit distribution to members 48 000 Allowance for credit losses 1 170 Land and buildings at cost. 300 000 Equipment at cost ....... 208 000 Investment (fixed deposit at Blond Bank). 90 000 Inventory: merchandise 101 980 3460 Inventory: consumables Long-term loan 48 000 Bills receivable 11 510 Bills payable 8 910 38 880 Accumulated depreciation: Equipment 4 320 Accrued expenses.. 1 935 Prepaid expenses. 820 Bank (cr) 435 Petty cash 1 080 Interest on loan.. 33 680 Debtors control 9 690 Creditors control 40 500 SARS (income tax) (dr). 311 480 Profit before tax (before any applicable adjustments). 2. Additional Information 2.1 In addition to the interim profit distribution the following needs to be paid to members: Y Yellow: Members distribution R27 000 B Blue: Members distribution R52 500 1.2 SA normal tax for the financial year amounted to R37 150. 2.3 The long-term loan was acquired from Pretty Bank on 1 May 2018 at 12% interest per annum, payable at the end of the year. A further loan of R R12 000 was received from Pretty Bank on 01 October 2019. The full loan must be repaid in 6 annual instalments with the first instalment due on 1 March 2021. The loan is unsecured. The interest on loan has not yet been taken into account in arriving at the profit before tax. 33 ASSIGNMENT 02 - SECOND SEMESTER (continued) 2.4 Interest on the loan from Y Yellow is charged at 12% per annum and is capitalised at the end of each financial year end. The interest that is due to Y Yellow has not been taken into account in this current year. The loan from Y Yellow is repayable in full on 31 July 2029 QUESTION 1 Which one of the following alternatives represents the correct amount that must be disclosed as the profit for the year in the statement of profit and loss and other comprehensive income for the year ended 31 July 2020? 1. R311 480 2. R190 000 3. R295 760 4. R285 610 QUESTION 2 Assuming that the profit for the year amounted to R 200 000 in the statement of profit and loss of Yblue CC for the year ended 31 July 2020. Which one the following alternatives represents the correct amount that must be disclosed as retained earnings in the statement of changes in equity of YBlue CC for the year ended 31 July 2020? 1. R97 000 2. R131 000 3. R72 500 4. R155 000 QUESTION 3 Which one of the following alternatives represents the correct amount that must be disclosed as non-current assets in the statement of financial position of YBlue CC as at 31 July 2020? 1. R508 000 w 2. R598 000 3. R559 120 4 R469 120 QUESTION 4 Which one of the following alternatives represents the correct amount that must be disclosed as current assets in the statement of financial position of YBlue CC as at 31 July 2020? 1. 2 3 R261 000 R298 150 R 45 955 R257 540 34 QUESTION 5 Which one of the following alternatives represents the correct amount that must be disclosed as current liabilities in the statement of financial position of YBlue CC as at 31 July 2020? 1. R106 860 2. R110 420 3. R22 920 4. R114 860 QUESTION 6 Which one of the following alternatives represents the correct amount that must be disclosed as other components of equity in the statement of financial position of YBlue CC as at 31 July 2020? 1. R380 000 2. R48 000 R34 000 4 R24 950