General reserve Retained income - 01/01/2021 6% debentures of R10 each 10% long-term loan Provision for accumulated depreciation: Machinery Furniture Provision for bad debts Creditors Dividends received \begin{tabular}{|r|r} 54000 \\ & 30000 \\ & 60000 \\ & 25000 \\ & \\ & 43900 \\ & 18400 \\ & 5625 \\ & 40900 \\ & 3000 \\ \hline 916325 & 916325 \\ \hline \end{tabular} The following list of balances for the year ended 31 December 2021 was taken from the records of Twala Ltd: 12. The 6% debentures are secured by a mortgage bond over land and buildings. The debentures must be redeemed from 30 June 2018 in equal annual instalments of R6 000. 13. The long-term loan is an unsecured 10% loan and must be repaid on 1 December 2021. 14. The land consists of freehold property (Erf No. 345, Epping) with a warehouse erectec on it, and is situated at 60 Durham Avenue, Epping Industria. The land and buildings were acquired on 10 January 2007. 15. Depreciation rates are as follows: Machinery - 10% on reducing balance. Furniture 10% on reducing balance Required Draft the notes to the financial statements, excluding the accounting policies note Show all calculations Hint: Notes to the financial statements are going to consist of the following notes: - Property, plant and equipment - Investments - Inventories - Issued capital Interest on the debentures and the long-term loan is payable annually on 31 December, and must be provided for the whole year. 7. The authorised share capital consists of 200000 ordinary shares of R1,00 each and 20000010% redeemable preference shares of R1,00 each. The issued share capital consists of 130000 ordinary shares of R1,00 each and 4000010% redeemable preference shares of R1,00 each. The preference shares are redeemable at a premium of 5% on 31 December 2021. The directors have the authority to issue the un-issued shares at their discretion, which authority expires at the next annual general meeting. 8. Provision should be made for normal tax of R40000. 9. Final dividends recommended: ordinary shares at 10% and preference shares at 5% of nominal value. 10. The directors decided to transfer R5000 from the general reserve. 11. The listed investment consists of 1000 ordinary shares in ABC Ltd. acquired at a cost of R20 000, and had a market value of R25 000 at 31 December 2021. The balance of the investment consists of 3000 ordinary shares in GX (Pty.) Ltd. acquired at a cost of R15 000, and was valued by the directors at R16 000 at 31 December 2021. The following additional information is also available: 1. The turnover for the year consists of net invoiced sales. 2. Operating expenses for the year consist of the following: 3. The rent has been received for eleven months. Provision should be made for the outstanding amount. 4. Dividends amounted to R2 000 on listed investments, and to R1 000 on unlisted investments. General reserve Retained income - 01/01/2021 6% debentures of R10 each 10% long-term loan Provision for accumulated depreciation: Machinery Furniture Provision for bad debts Creditors Dividends received \begin{tabular}{|r|r} 54000 \\ & 30000 \\ & 60000 \\ & 25000 \\ & \\ & 43900 \\ & 18400 \\ & 5625 \\ & 40900 \\ & 3000 \\ \hline 916325 & 916325 \\ \hline \end{tabular} The following list of balances for the year ended 31 December 2021 was taken from the records of Twala Ltd: 12. The 6% debentures are secured by a mortgage bond over land and buildings. The debentures must be redeemed from 30 June 2018 in equal annual instalments of R6 000. 13. The long-term loan is an unsecured 10% loan and must be repaid on 1 December 2021. 14. The land consists of freehold property (Erf No. 345, Epping) with a warehouse erectec on it, and is situated at 60 Durham Avenue, Epping Industria. The land and buildings were acquired on 10 January 2007. 15. Depreciation rates are as follows: Machinery - 10% on reducing balance. Furniture 10% on reducing balance Required Draft the notes to the financial statements, excluding the accounting policies note Show all calculations Hint: Notes to the financial statements are going to consist of the following notes: - Property, plant and equipment - Investments - Inventories - Issued capital Interest on the debentures and the long-term loan is payable annually on 31 December, and must be provided for the whole year. 7. The authorised share capital consists of 200000 ordinary shares of R1,00 each and 20000010% redeemable preference shares of R1,00 each. The issued share capital consists of 130000 ordinary shares of R1,00 each and 4000010% redeemable preference shares of R1,00 each. The preference shares are redeemable at a premium of 5% on 31 December 2021. The directors have the authority to issue the un-issued shares at their discretion, which authority expires at the next annual general meeting. 8. Provision should be made for normal tax of R40000. 9. Final dividends recommended: ordinary shares at 10% and preference shares at 5% of nominal value. 10. The directors decided to transfer R5000 from the general reserve. 11. The listed investment consists of 1000 ordinary shares in ABC Ltd. acquired at a cost of R20 000, and had a market value of R25 000 at 31 December 2021. The balance of the investment consists of 3000 ordinary shares in GX (Pty.) Ltd. acquired at a cost of R15 000, and was valued by the directors at R16 000 at 31 December 2021. The following additional information is also available: 1. The turnover for the year consists of net invoiced sales. 2. Operating expenses for the year consist of the following: 3. The rent has been received for eleven months. Provision should be made for the outstanding amount. 4. Dividends amounted to R2 000 on listed investments, and to R1 000 on unlisted investments