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Bamboo Limited Bamboo Limited was incorporated on 1 March 2015 with an authorised share capital of R400 000 (200 000 shares), of which half has

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Bamboo Limited Bamboo Limited was incorporated on 1 March 2015 with an authorised share capital of R400 000 (200 000 shares), of which half has already been issued. On 28 February 2019 the following balances appeared in the records of the company: Account Name Amount R Ordinary share capital (50 000 shares) 100 000 Retained earnings on 1 March 2018 19 000 Investment in Wood Ltd - At cost 90 000 Land and buildings - At cost 250 000 Delivery vehicles - At cost 50 000 Delivery vehicles - Accumulated depreciation (1 March 2018) 15 000 Accounts receivable 15 000 Allowance for credit losses 1 000 Accounts payable 31 500 Inventory on 28 February 2019 18 250 Bank (favourable) 30 000 10% Long-term loan 75 000 Petty cash 500 Sales 180 000 Cost of sales 45 000 Interest paid on long-term loan 3 750 Salaries and wages 12 000 Electricity and water 4 000 Credit losses 3 000Additional information: The directors of Bamboo Ltd decided to issue an additional 50 000 shares (at the original price) on 28 February 2019. Bamboo Lid received applications for all these shares and allotted the applications. No entries have been made for the allotment of the shares. The investment in Wood Limited, a listed company, consists of 30 000 ordinary shares originally purchased at R3 each. The shares were purchased with the intention of being a long-term investment and not for trading. The fair value of the investment is R80 000.Depreciation on vehicles must be written off at 25% per annum on the reducing-balance method. No depreciation is written off on land and buildings. Credit losses of R500 should be written off as irrecoverable. The allowance for credit losses should be adjusted to R2 000. Interest on the long-term loan is still due. Electricity of R500 was still due to the Municipality. . An income tax provision of R12 500 should be made for the current year. Source: Klopper, J. 2020. Required Prepare the Statement of Financial position for Bamboo Ltd as on 28 February 2019. Assume that the net profit for the year (after all the above transactions have been taken into account) has been calculated at R87 000. (20 Marks)

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