EXTRACT OF BALANCES AS AT 28 FEBRUARY 2021: R 256 600 719 700 40 500 285 000 7 000 119 800 31 600 1124 400 1585 500 84 100 105 000 Retained earnings (1 March 2020) Share capital: Ordinary shares (1 March 2020) Inventory (1 March 2020) Trade receivables control Petty cash Loan: Nandoni Bank SARS (income tax) (Dr) Land and buildings at revaluation Equipment at cost Accumulated depreciation Equipment Revaluation surplus (1 March 2020) Income received in advance Allowance for credit losses Bank (Dr) Trade payables control Auditor's remuniration Sales Carriage on sales Settlement discount received Allowance for settlement discount granted Purchases Salaries and wages Carriage on purchases Directors' remuneration Settlement discount granted Stationery Telephone Additional information: 81100 6 200 130 600 232 600 43 000 1 461 700 12 400 2 100 7 600 279 100 273 200 1 800 206 800 5 100 8 100 6 200 1. The allowance for credit losses must be adjusted to R6 600. A debtor who owes the business R10 300 was declared insolvent and must be written off as irrecoverable. 2. The income tax for the financial year ended 28 February 2021 amounted to R121 100 and must still be recorded. 3. Authorised share capital consists of 400 000 NPV ordinary shares Share capital stated above consists of ordinary shares issued at R3.5 per share, On 01 December 2020, the directors issued 57 000 shares at R4 8 per share, the shares were taken up by the public on 1 February 2021, this transaction has not been recorded. 15.48 4 The loan from Nandoni was acquired on 1 March 2018 at an interest rate of 8% per annum. Interest on all loans for the current financial year has not yet been accounted for. The loan is repayable in four annual equal instalments with effect from 1 March 2021. 5. Directors made the following resolutions at year end Dividends declared at 80 cents per share and will paid at the end of April 2021 A total bonus amounting to R72 000 must be paid to directors on 30 April 2021 Only 30% of the auditors' fees was settled at the year end, with the remainder to be paid to the auditors during the second week of March 2021. The above transactions have not been recorded. 6. Provision of R38 400 must still be made for depreciation on equipment. 7. . Inventory on 28 February 2021 consisted of the following: Inventory (stock) on hand R45 000 Stationary on hand R 4.400 The revaluation of land for the current year resulted in a revaluation surplus amounting to R99 000. 8 QUESTION 1 Which alternative represents the correct amount for carrying amount of land and buildings in the statement of financial position of Machivandihala Ltd as at 28 February 2021? A. 1 223 400 B. 963 900 . C. 1041 100 D. 1 062 900 . E. 1 124 400 F. 1 140 100 Reset Selection Question 2 of 13 30 Poin III O 15:48 QUESTION 2 Which alternative represents the correct amount for carrying amount of equipment in the statement of financial position of Machivandihala Ltd as at 28 February 2021? A. 425 900 . B. 391 500 C. 463 000 D. 429 900 E. 501 400 . F. 464 300 Reset Selection Question 3 of 13 3.0 Points QUESTION 3 Which alternative represents the correct amount for inventories in the statement of financial position of Machivandihala Ltd as at 28 February 2021? A. 41 900 B. 37 500 . O O O O C. 34 700 . D. 39 100 O E. 32 100 F. 49 400 Reset Selection 3.0 Points Question 4 of 13