14. 13. The members decided to distribute 30% of the profit of the close corporation, after taxation, in proportion to their contribution. These amounts will not be paid out in cash but will be left in the close corporation as loans to the corporation. These loans are unsecured and an interest rate of 20% p.a. is applicable. It was further decided that 50% of these loans must be repaid on 31 March 2013. The balances on these accounts are repayable on 31 December 2020. Actual Income Tax for the year is R 89 850. Required: 2.1 Prepare the Statement of Comprehensive Income for 31 December 2013. (20) Carriage on purchases Telephone and faxes Subscription fee Insurance Repairs 6.500 10 200 1200 5 500 4 200 1 261 150 1261 150 Additional Information 1. The inventory at 31 December 2013 amounted to R 43 000 2. Included in sales is an amount of R 7 000 received on 31 December 2013 for a deposit 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. on an order to be completed during the next financial year. Provision for bad debts must be adjusted to R1 500 Bad debts written off must be R 1 500 Land & Buildings consist of shop 1a purchased on 20 January 2013 for R90 000. The policy for Tasco CC is not to depreciate Land & Buildings Deprecation must still be provided as follows: Vehicles 20% pa on diminishing balance method Equipment 10% pa on cost All settlement discounts were claimed Water and electricity is still outstanding at year end, R4 000 Insurance above is only recorded for 11 months Provision still has to be made for interest on the fixed deposit at 15% p.a. receivable on the 01 January 2014. Interest on mortgage loan must still be provided at 10% pa, 40% of the loan will be repaid on 01 August 2014. The loan to member OLI was granted on the 01 June 2013 and interest of 12% p.a. must be calculated. The following information was extracted from the books of TASCO CC, on 31 December 2013, the last day of the financial year. TASCO CC TRIAL BALANCE AS AT 31 DECEMBER 2013 Member's Contribution: TAU Member's Contribution: OLI Land and Buildings at cost Equipment at cost Vehicles at cost Accumulated depreciation on equipment DEBIT CREDIT 160 000 40 000 520 000 55 000 125 000 10 000 (01/01/2013) Accumulated depreciation on vehicles (01/01/2013) 65 000 Debtors Control 23 000 Creditors Control 42 000 Bank 17 500 Fixed Deposit 70 000 Mortgage Loan 250 000 Provision for bad debts 1.650 Retained Earnings (01/01/2013) 30 500 SARS Income tax 49 000 Loan to OLI 50 000 Loan from TAU 60 000 602 000 Sales 225 000 Purchases Inventory (01/01/2012) 25 000 Salary: TAU 50 000 20 000 Salary: OLI 1550 Settlement discount granted 2 500 Stationery