EXTRACT OF BALANCES AS AT 28 FEBRUARY 2021:
	R
Retained earnings (1 March 2020)	256 600
Share capital: Ordinary shares (1 March 2020)	719 700
Inventory (1 March 2020)	40 500
Trade receivables control	285 000
Petty cash	7 000
Loan: Nandoni Bank	119 800
SARS (income tax) (Dr)	31 600
Land and buildings at revaluation	1 124 400
Equipment at cost	585 500
Accumulated depreciation: Equipment	84 100
Revaluation surplus (1 March 2020)	105 000
Income received in advance	8 100
Allowance for credit losses	6 200
Bank (Dr)	130 600
Trade payables control	232 600
Auditor's remuniration	43 000
Sales	1 461 700
Carriage on sales	2 400
Settlement discount received	2 100
Allowance for settlement discount granted	7 600
Purchases	279 100
Salaries and wages	273 200
Carriage on purchases	1 800
Directors remuneration	206 800
Settlement discount granted	5 100
Stationery	8 100
Telephone	6 200

Additional information:

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.

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

8. The revaluation of land for the current year resulted in a revaluation surplus amounting to R99 000.

QUESTION 5

Which alternative represents the correct amount for cash and cash equivalents in the statement of financial position of Machivandihala Ltd as at 28 February 2021?

A. 120 900

• B137 600
• C.130 600
• D.117 800
• E.111 900
• F.127 300

Question 6 of 13

3.0 Points

QUESTION 6

Which alternative represents the correct amount for share capital in the statement of financial position of Machivandihala Ltd as at 28 February 2021?

• A.666 300
• B.616 900
• C.719 700
• D.993 300
• E.890 500
• F.939 900

QUESTION 7

Assume the correct profit for the year amount is R203 000. Which alternative represents the correct amount for retained earnings in the statement of financial position of Machivandihala Ltd as at 28 February 2021?

• A.230 294
• B. 249 497
• C.239 503
• D.437 400
• E.459 600
• F.416 900

QUESTION 8

Which alternative represents the correct amount for other components of equity in the statement of financial position of Machivandihala Ltd as at 28 February 2021?

• A.105 000
• B.97 200
• C.90 000
• D. 196 200
• E.189 000
• F.204 000

QUESTION 9

Which alternative represents the correct amount for long-term loan to be disclosed under non-current liabilities in the statement of financial position of Machivandihala Ltd as at 28 February 2021?

A.83 175

• B.89 850
• C.119 800
• D.76 950
• E.110 900
• F.102 600