Financial accounting

YOU ARE REQUIRED to Prepare the Statement of profit or loss and other comprehensive income and relevant notes of Zulu Limited for the year ended 30 June 2019 to comply with International Financial Reporting Standards. Ignore comparative figures. > Show all figures calculations5 Administrative expenses consist of the following R Salaries and wages 800 000 Auditors' remuneration - travel 2 000 Auditors' remuneration - audit fees 12 000 Marketing expenses 3 000 Water and electricity 4 200 Repair and maintenance 1 100 822 300 6 Salaries and wages of Zulu Limited include, amongst others, the following remuneration that was paid to senior personnel. R Executive director - Mr Nkosi 200 000 Marketing manager - Mr Ofense 150 000 Chairman of the board - Mr Nare 120 000 Each of the directors also received compensation of R2 500 per meeting attended during the year Four board meetings were held during the year and all the directors attended all the meetings. A pension of R100 000 was paid to Mrs Duduzile Khumalo (She is the widow of a former executive director of Zulu Limited) 7 The following transactions must still be accounted for: 7.1. Depreciation on machinery and equipment Is calculated at 20% per annum using the diminishing balance method Machinery with a cost price of R10 000 and a carrying amount of R4 000 was sold on 2 July 2018 for R5 000. 7.2. Buildings purchased on 30 June 2018 are written off over a period of 50 years according to the straight-line method. 84 7.3. The buildings were revalued on 30 June 2019 by Mr Khubeka, a sworn appraiser, to R1 424 000. The buildings are occupied by Zulu Limited. 8. Investments consist of the following: 8.1 100 000 Ordinary shares in Karabo Limited purchased at R1 each during the current year. These shares are traded on the Johannesburg Stock Exchange and the market value of R1,25 each on 30 June 2019. This investment was designated as a financial asset through other comprehensive income. 8.2. 30 000 Ordinary shares in Folklores Limited purchased at a cost price of R45 000. Folklores Limited's shares were trading on the JSE at a price of R1,50 each on 30 June 2019. 8.3. No entry was made in respect of the fair value adjustment of the above- mentioned investments. 9. The 12% long-term loan originated on 31 May 2014 and the capital portion is repayable in 8 equal annual instalments beginning on 31 December 2016 Interest Is payable twice a year on 31 December and 30 June.enemamasses The following Information was taken from the books of Zulu Limited a listed company for the nancial year ended 30 June 2019 R Ordinary share capital {shares issued at R2 per share) 1 200 000 12% Long-term loan {or} (Note 9) 150 000 10% Cumulative preference share capital 350 000 Retained earnings {0 1 {0712018} 420 000 Buildings at cost 1 200 000 Land at cost 200 000 Machinery and equipment at cost {0110102010} 100 000 Accumulated depreciation - Machinery and equipment i01i0i'l201-5} 75 000 - Buildings {01l01'i201 B] 300 000 Sales {revenue} 4 300 000 Other income {note 3] 10 550 Other expenses {note 4) 08 T00 Administrative expenses {notes 5 and B} 822 300 Investments at cost {note 8) 245 000 Loan to Folklores limited {note 2} 00 000 Income tax expense {assume correct] 95 000 eddlonlentexmetlnm Zulu Limited maintains an annual gross profit percentage of 30% on turnover. The loan to Folkloree Limited was granted on 31 August 2013 at an interest rate o19% per annum No capital payments are due until 30 June 2022. The tollowing are amongst others. already included in \"other income\" Dividend: received R Folklores Limited 900 Karabo Limited ?? Karabo Limited declared and paid a dividend of 10c per share during the year Interest received Current bank account Trade and other receivables Folklores Limited {note 8) \"i? 4 The following are. amongst others. already included in "other expenses" R Interest paid - long-term loan 1'? Interest paid - bank Overdraft 1 200 Credit losses 1 500 Sundry expenses 21 000