FINAL ONLINE SUMMATIVE ASSESSMENT

PROGRAMME

Bachelor of Public Administration

Bachelor of Business Administration

Bachelor of Commerce in Digital Marketing

Bachelor of Commerce in Project Management

Bachelor of Commerce in International Business

Bachelor of Commerce in Financial Management

Bachelor of Commerce in Marketing Management

Bachelor of Commerce in Supply Chain Management

Bachelor of Commerce in Human Resource Management

Bachelor of Commerce in Tourism and Hospitality Management

Bachelor of Commerce in Information and Technology Management MODULE

Financial Reporting and Analysis YEAR

One $(1)$ INTAKE

July $2023$ Semester $2$ DATE

$14$ May $2024$ TOTAL MARKS

$100$

Answer ALL the questions.

$(100$ MARKS$)$

QUESTION $1$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Financial Position as at $29$ February $2024.$

INFORMATION

The trial balance, additional information and adjustments given below were obtained from the records of Torga Traders on $29$ February $2024,$ the end of the financial year.

TORGA TRADERS

PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $29$ FEBRUARY $2024$

Debit $($R$)$

Credit $($R$)$

Balance sheet accounts section

Capital

$3530000$

Drawings

$362000$

Land and buildings at cost

$2340000$

Equipment at cost

$1600000$

Vehicles at cost

$1000000$

Accumulated depreciation on equipment

$504000$

Accumulated depreciation on vehicles

$252000$

Fixed deposit: Zap Bank $(9\%$ p$.$a$.)$

$100000$

Trading inventory

$244000$

Debtors control

$302000$

Bank

$98000$

Cash float

$2000$

Creditors control

$376000$

Loan: Zap Bank $(18\%$ p$.$a$.)$

$184000$

Nominal accounts section

Sales

$4086000$

Cost of sales

$2340000$

Sales returns

$70000$

Advertising

$50000$

Stationery

$8000$

Bad debts

$12000$

Discount allowed

$20000$

Discount received

$14000$

Electricity and water

$152000$

Interest on fixed deposit

$4000$

Interest on overdraft

$2000$

Insurance

$30000$

Salaries

$450000$

Bank charges

$16000$

Rent income

$130000$

Municipal rates

$78000$

$9178000$

$9178000$

Additional information and adjustments

$1.$

The bookkeeper did not record the following debit entries that appeared on the February $2024$ bank statement:

$1\mathrm{.}1$

Bank charges

R$1400$

$1\mathrm{.}2$

Interest on overdraft

R$200$

$2.$

The financial year$-$end inventory count revealed the following inventories:

$2\mathrm{.}1$

Trading inventory

R$240000$

$2\mathrm{.}2$

Stationery

R$1000$

$3.$

Vehicles are to be depreciated at R$150000$ per year.

$4.$

Depreciation on equipment amounted to R$219200.$

$5.$

Provide for R$5000$ outstanding interest on the fixed deposit. Interest is not capitalised. The investment in fixed deposit was made on $01$ March $2023$ and it matures on $28$ February $2026.$

$6.$

The loan was obtained from Zap Bank on $01$ February $2024.$ Provide for the outstanding interest for February $2024,$ R$2760.$ Interest is not capitalised. Repayments $($excluding interest$)$ totalling R$24000$ are expected to be made during the financial year ended $28$ February $2025.$

$7.$

The tenant has already paid the rent of R$10000$ for the first month of the next financial year.

$8.$

The municipal rates statement for the year ended $29$ February $2024$ reflected that R$6000$ was paid in advance for the next financial year.

$9.$

A debtor who owed R$2000$ was declared insolvent. Her account must now be written off.

$10.$

A provision for bad debts of R$15000$ must be created.

$11.$

The net profit for the year ended $29$ February $2024,$ after taking the above into account, amounted to R$613440.$

QUESTION $2$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Changes in Equity for the year ended $29$ February $2024.$

INFORMATION

The information given below was extracted from the accounting records of Benson Traders, a partnership business with Bennie and Sonny as partners.

Extract from the ledger of Benson Traders as at $29$ February $2024$

Debit $($R$)$

Credit $($R$)$

Capital: Bennie

$1000000$

Capital: Sonny

$800000$

Current a$/$c: Bennie $(01$ March $2023)$

$60000$

Current a$/$c: Sonny $(01$ March $2023)$

$80000$

Drawings: Bennie

$500000$

Drawings: Sonny

$600000$

The following must be considered:

$(1)$

The Statement of Comprehensive Income for the year ended $29$ February $2024$ reflected a net profit of R$1200000.$

$(2)$

The partnership agreement provided for interest on capitals at $15\%$ p$.$a$.$ on the balances in the capital accounts. However, the partners agreed to increase the interest rate to $18\%$ p$.$a$.$ with effect from $01$ September $2023.$ Bennie also increased his capital contribution by R$200000$ on the same date. The capital change has been recorded.

$(3)$

The partners are entitled to the following monthly salaries:

Bennie R$20000$

Sonny R$18000$

$(4)$

Sonny is entitled to a special bonus of $10\%$ of the net profit $($before any appropriations$).$

$(5)$

The balance of the profit or loss must be shared between Bennie and Sonny in the ratio of their capital balances at the beginning of the financial year.

QUESTION $3$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Comprehensive Income of Omega Limited for the year ended $29$ February $2024.$

INFORMATION

The t