MegaBuild Inc. is a renowned construction company based in Durban. The company specialises in building luxury apartments and commercial spaces. MegaBuild Inc. has a financial yearend of $31$ December. You have been provided with an extract trial balance for the $11$ months ended $30$ November $2024,$ as well as transactions for the month of December $2024.$

An extract of the trial balance of MegaBuild Inc. as at $30$ November $2024$:

$\backslash$table$[[$Account$,\backslash$table$[[$Debit$],[($R$)]],\backslash$table$[[$Credit$],[($R$)]]],[$Bank Overdraft,,$210000],[$Loan: Money Bank $(12\%),,1200000],[$Interest expense,$132000,]]$

The following transactions took place during the month of December $2024$:

MegaBuild secured a deal to construct a new $10-$floor luxury apartment building. The client paid $20\%$ of the total contract value of R$25000000$ as a down$-$payment to MegaBuild. Construction of the new $10-$floor luxury apartment will only begin on $01$ January $2025.$

Construction materials were purchased on credit from BuildMart for R$6500000.$ MegaBuild negotiated a $5\%$ discount if the amount is paid within $15$ days. The company paid $50\%$ of the amount owed to BuildMart within the agreed time.

MegaBuild sold one of its older cranes for R$800000$ cash. The crane originally cost R$1200000$ and had accumulated depreciation of R$500000$ up to the date of sale.

On $1$ December, Money Bank increased the loan to MegaBuild by a cash amount of R$500000.$ Interest on the loan is paid by MegaBuild on the last day of each month. The loan capital will be repaid in full on $31$ December $2025.$ The loan was initially taken out on $1$ January $2019.$

MegaBuild earned a monthly rental income of $R120000$ from one of the company's commercial properties.

Salaries for the month totalled R$2000000.$ However, $10\%$ was deferred to be paid next month.

$60$

HFAC$131-1-$Jan$-$Jun$2024-$FA$1-$LVN$-$V$3-20240119$

ANNEXURE F: FORMATIVE ASSESSMENT $1$

To bolster its operations, the company purchased a second$-$hand truck on $31$ December $2024$ for R$750000.$ A deposit of R$250000$ was immediately made. The remaining R$500000$ was financed through a loan from East Bank. The bank extended a $4-$year loan at an annual interest rate of $7\mathrm{.}2\%.$

REQUIRED:

Prepare the following accounts in the General Ledger of MegaBuild Inc for the month of December $2024.$ Entry dates are not required, but ensure that the accounts are balanced and appropriately closed off:

$3\mathrm{.}1$ Bank Account

$(13$ mark$)$

$3\mathrm{.}2$ Loan Account

$3\mathrm{.}3$ Interest Expense Account

Competency Framework Reference: