MADIMA Limited Trial Balance as at 30 June 2020. Debit (R) Credit (R) Balance Sheet Accounts Section Ordinary share capital 800 000 Retained earnings 864 000 Land and buildings 1 983 200 Vehicles (cost) 160 000 Equipment (cost) 300 000 Accumulated depreciation on vehicles 28 000 Accumulated depreciation on equipment 56 000 Long-term loan: Box Bank (14% p.a.) 528 000 Debentures (13% p.a.) 400 000 Investment in Vac (Pty) Ltd 96 000 Inventory (01 July 2019) 224 000 Debtors control 256 000 Provision for bad debts 5 120 Bank 228 520 Creditors control 108 520 SARS: Company tax 70 000 Nominal accounts Section Sales 2 110 160 Purchases 916 000 Sales returns 20 000 Purchases returns 24 000 Customs duty 21 600 Carriage on purchases 70 000 Carriage on sales 12 000 Sundry expenses 59 480 Salaries 256 000 Motor expenses 7 200 Interest on loan 73 920 Discount allowed 7 760 Commission income 72 200 Directors fees 120 000 Auditors fee 24 000 3 Ordinary share dividends (interim) 32 000 Repairs 58 320 4 996 000 4 996 000

Additional information

1. The provision for bad debts must be increased by R3 680.

2. Trading inventory according to stocktaking on 30 June 2020 amounted to R192 000.

3. Capital repayments totalling R48 000 are payable on the unsecured loan from Box Bank in the next financial year.

4. Depreciation must be provided for as follows: a. On vehicles at 20% on cost b. On equipment at 28% on cost

5. A dividend of 20% of the investment value has been declared by Vac (Pty) Ltd. The dividend has not yet been received.

6. The authorised share capital consists of 500 000 ordinary shares.

7. Note: On 01 July 2019, the company increased the ordinary share capital by issuing 100 000 shares at R2 each.

8. A non-distributable asset replacement reserve of R200 000 must be created.

9. Debentures consist of 20 000 13% debentures of R20 each, issued on 01 July 2019 and redeemable on 30 June 2024. The debentures are secured by a first mortgage bond over land. Provision must be made for the current years interest.

10. The company tax for the year amounted to R124 800.

11. The directors declared a final dividend of 16 cents per share.

REQUIRED

Prepare post adjusted trial balance.