Alphabets and Numbers Use the following information to answer questions 1 to 12. Alphabets and Numbers 1. Balances as at 28 February 2023: R Members contribution: Thabo 168000 Members contribution: Thabang 252000 Retained earnings (1 March 2022) 67920 Revaluation surplus 98400 Loan from Thabo 84000 Distribution to member: Thabo 38400 Distribution to member: Thabang 57600 Loan to Thabang 60000 Allowance for credit losses 3600 Land and buildings at valuation (cost price R153600) ? ? Equipment at cost (01 March 2022) 198000 Investment at fair value 150000 Trading inventory 168600 Consumable inventory 7440 Long-term loan: Lethabong bank 72000 Accumulated depreciation: Equipment 74784 Accrued expenses 8160 Prepaid expenses 4200 Bank (overdraft) 30144 Petty cash 840 Trade receivables control 84528 Trade payables control 37848 Profit before tax 209256 SARS (Income tax) (Dr) 84504 Additional information 1.The following information relates to the fixed assets of Alphabets and Numbers: The depreciation on the old equipment for the year amounted to R42 250. On the 28 February 2023 Alphabets and Numbers purchased a new equipment for R150 000. It is the accounting policy to depreciate equipment at 20% per annum with nill residual value. The transaction still needs to be recorded. On 31 December 2022 the land and buildings were revalued for by Mr Two, an independent sworn appraiser. The transaction has already been recorded. There were no other disposals of, or additions to the land and buildings and equipment during the financial year except for the ones mentioned above. 2. On 1 September 2022, Alphabets and Numbers CC purchased 30 000 ordinary shares at R4 each in Vodakom Limited. On 28 February 2023 the shares traded at R5,00 per share. 3. Credit losses of R6 000 must be written off. The closing balance of the allowance for credit losses account must be increased with R1 200.The transaction has not yet been recorded. 4. The loan to Thabang is immediately callable. 5. During 2023 Alphabets and Numbers obtained an interest free loan from Thabo of R84 000, the first instalment of R21 000 must be paid on 31 January 2024.The loan is unsecured. 6. The actual income tax for the financial year amounted to R62 850 and must still be recorded. 7. A further distribution of R20 000 to Thabo and R35 000 to Thabang must still be made to the members. 8. Alphabets and Numbers obtained a long-term loan from Lethabong Bank on 1 June 2022 at 15% interest per annum and is secured by mortgage bond over land and buildings. The capital amount of the loan must be repaid on 31 May 2026. QUESTION 1 Assuming a Revaluation Surplus of R56 400. Which alternative represents the correct amount to be disclosed as carrying amount of Land and Buildings in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R324 070 B. R153 600 C. R210 000 D. R97 200 QUESTION 2 Which alternative represents the correct amount to be disclosed as carrying amount of Equipment in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R192 250 B. R273 216 C. R198 000 D. R348 000 QUESTION 3 Which alternative represents the correct amount to be disclosed as Listed Shares Investment in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R270 000 B. R150 000 C. R120 000 D. R135 000 QUESTION 4 Which alternative represents the correct amount to be disclosed as Inventory in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R161 160 B. R168 600 C. R176 040 D. R165 000 QUESTION 5 Which alternative represents the correct amount to be disclosed as Trade Receivables in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R84 528 B. R78 528 C. R79 728 D. R86 928 QUESTION 6 Which alternative represents the correct amount to be disclosed as Members Contribution in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R420 000 B. R252 000 C. R32 000 D. R168 000 QUESTION 7 The R60 000 loan to Thabang will be disclosed as current assets in the statement of financial position of Alphabets and Numbers for the year ended 28 February 2023. True False QUESTION 8 Assuming the land and buildings were revalued for the first time in 2023. Which alternative represents the correct amount to be disclosed as Other Components of Equity in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R252 000 B. R153 600 C. R98 400 D. R134 000 QUESTION 9 Which alternative represents the correct amount to be disclosed as Current tax payable in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R84 504 B. R8 346 C. R92 850 D. R147 354 QUESTION 10 Which alternative represents the correct amount to be disclosed as Total Members Distribution in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R153 400 B. R58 400 C. R120 000 D. R95 000 QUESTION 11 Which alternative represents the correct amount to be disclosed as Long-Term Borrowings in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R84 000 B. R135 000 C. R72 000 D. R156 000 QUESTION 12 Which alternative represents the correct amount to be disclosed as Trade and other payables in the statement of financial position of Alphabets and Numbers as at 28 February 2023? A. R30 000 B. R46 008 C. R37 848 D. R29 688