12:15 y 46% Question 1 (25 Marks: 50 minutes) ) VIRTUAL AIR (PTY) LTD" is a small company which, because of its aggressive advertising campaigns, has a significant profile. The company is engaged in the manufacturing of gas filled hot air balloons. At 31 December 2020 (the company's year- end is 31 December) the following trial balance was extracted from its books: Account details Debit Credit 7 266 19 725 5 120 125 000 3 250 6 225 10 250 Bank overdrafts Furniture and office equipment at cost Listed investment at cost Loan secured by notarial bond Loose tools, valuation Accumulated depreciation: Furniture and office equipment Accumulated depreciation: Vehicles Provisional tax paid Unlisted investments Retained income Stated capital (Authorised share capital of 500 000 share of no par value) Inventories Accounts payable Accounts receivable Vehicles al cost 11 200 2 280 51 163 193 621 280 473 123 439 197 747 25 620 519 80% 519.803 Most of the closing entries had been passed already. You are able to ascertain that: o The following depreciation rates are applicable: Furniture and office equipment-10% on the straight line method Vehicles- 25% on the straight line method The listed investment were acquired for speculative purposes. Inventory are valued at lower of cost and net realisable value on a FIFO basis An interim dividend of N$ 5 000 was declared and paid on 01 October 2020 and a final dividend of NS 5 000 was declared on 30 December 2020. This dividend will be paid on 18 January 2021. Normal taxation amounted to NS23 441. The loan of NS 125 000 is to be repaid in five (5) years' time and is secured by a notarial bond REQUIRED: 1. Prepare the statement of financial position for "VIRTUAL AIR (PTY) LTD' as at 31 December 2020 to comply with the requirements of IFRS and Companies Act. (10 marks) 2. Prepare the following accounting policies and notes to comply with the requirements of IFRS and Companies Act to accompany the financial statements with regard to: (15 marks) 2.1 2.2 2.3 Property, plant and equipment Long-term borrowings Inventories Listed investments 2.4 III o 12:15 y 46% Question 1 (25 Marks: 50 minutes) ) VIRTUAL AIR (PTY) LTD" is a small company which, because of its aggressive advertising campaigns, has a significant profile. The company is engaged in the manufacturing of gas filled hot air balloons. At 31 December 2020 (the company's year- end is 31 December) the following trial balance was extracted from its books: Account details Debit Credit 7 266 19 725 5 120 125 000 3 250 6 225 10 250 Bank overdrafts Furniture and office equipment at cost Listed investment at cost Loan secured by notarial bond Loose tools, valuation Accumulated depreciation: Furniture and office equipment Accumulated depreciation: Vehicles Provisional tax paid Unlisted investments Retained income Stated capital (Authorised share capital of 500 000 share of no par value) Inventories Accounts payable Accounts receivable Vehicles al cost 11 200 2 280 51 163 193 621 280 473 123 439 197 747 25 620 519 80% 519.803 Most of the closing entries had been passed already. You are able to ascertain that: o The following depreciation rates are applicable: Furniture and office equipment-10% on the straight line method Vehicles- 25% on the straight line method The listed investment were acquired for speculative purposes. Inventory are valued at lower of cost and net realisable value on a FIFO basis An interim dividend of N$ 5 000 was declared and paid on 01 October 2020 and a final dividend of NS 5 000 was declared on 30 December 2020. This dividend will be paid on 18 January 2021. Normal taxation amounted to NS23 441. The loan of NS 125 000 is to be repaid in five (5) years' time and is secured by a notarial bond REQUIRED: 1. Prepare the statement of financial position for "VIRTUAL AIR (PTY) LTD' as at 31 December 2020 to comply with the requirements of IFRS and Companies Act. (10 marks) 2. Prepare the following accounting policies and notes to comply with the requirements of IFRS and Companies Act to accompany the financial statements with regard to: (15 marks) 2.1 2.2 2.3 Property, plant and equipment Long-term borrowings Inventories Listed investments 2.4 III o