Move (Pty) Ltd (Move) is an energy sports drink manufacturing company. The company has a 30 June year-end.

You are presented with the following pre-adjustment trial balance of Move (Pty) Ltd as at 30 June 2023:

1. Share capital:

2023 2022

Authorised shares 1 000 000 1 000 000

Issued shares 850 000 800 000

During the 2023 financial year, additional capital was injected into Move by issuing shares to existing shareholders at R2 per share.

2.Drawings:

The owner, Mr. Jump, took a box of twelve energy sports drinks from Move to use during his training sessions at the gym. The cost price of the drinks amounted to R45 each, with a selling price of R54 each.

3.Machinery

Move purchased a new machine on the 1^st of December 2022 with a cost price of R630 000, which was available for use on the 1^st of January 2023. The residual value of the machine was estimated to amount to R30 000. The new machine was purchased to replace an older machine which was sold on the 30^th of November 2022. The original cost of the old machine that was sold amounted to R500 000 when it was purchased on the 1^st of July 2020 and was available for use on the same date. The machine was sold for an amount of R220 000. Apart from the new machine purchased, all other machinery had a residual value of zero. Machinery is depreciated over a period of 5 years on a straight-line basis.

4.Vehicles:

The vehicles given in the pre-adjustment trial balance consist of the following:

Double Cab Toyota Corolla

Cost priceR750 000R450 000

Date of purchase

Accumulated depreciation 1 July

1 July 20201 October 20202022R280 000R150 500Residual valueR50 000R20 000Depreciation methodStraight-lineStraight-lineUseful life5 years5 years

On the 31^st of August 2022, the Toyota Corolla was sold for an amount of R290 000. To replace the sold vehicle, Move purchased a Kia Forte on the 1^st of September 2022 for R550 000, with a residual value of R60 000. The vehicle was available for use on the date of purchase. The Kia Forte is depreciated over a period of 5 years on a straight-line basis.

5.Trade debtors:

Trade debtors include an outstanding balance from a retail store that purchases energy sports drinks from Move. The store is undergoing liquidation and is only able to repayMove 30 cents in the rand of the R2 000 balance outstanding, which was paid on the 28^th of June 2023. The remaining balance should be written off as bad debt.

6.Inventory:

The inventory balance as at 30 June 2023 is made up of the following:

Finished goodsR 220 000Raw materialsR 30 000

During the year-end inventory count, prior to transactions that have not yet been recorded, it was noted that there were a number of Powerdrinks, one of the popular energy sports drinks sold by Move, that are nearing their expiry date on the 2^nd of July 2023. As a result, Move can only sell each bottle of Powerdrink for R20, with selling costs amounting to R3 per bottle. The cost price per bottle is R35. There were 2 000 bottles of Powerdrink on hand at year-end. No adjustments were made to inventory at year-end.

7.Trade payables:

Move purchased raw materials from a local supplier. The cost price of the raw materials acquired amounted to R125 000. Move paid for half the raw materials in cash while the balance remained outstanding at the financial year-end. The transaction has not yet been accounted for at year-end.

8.Loan from Investor Bank:

On 1 January 2023, Move received a loan from Investor Bank for an amount of R120 000, which is repayable in 3 years. Interest is payable annually at a rate of 8% per annum. No transactions relating to the loan have been accounted for at year-end.

9.Prepaid expense:

Move has paid levies for the 15-month period that ends on the 30^th of September 2023.

10.Income received in advance:

Move received a payment of R155 000 from Game Stores, one of their customers, on 25^th of June 2023. The delivery of the sports energy drinks will take place on 10^th of July 2023. The transaction has not been accounted for at year-end.

11.Expenses:

The following cash-paid expenses have not been accounted for during the month of June 2023:

• Electricity and water R4 000
• Fuel expense R6 500
• Rent expense R11 000
• Salaries and wages R30 000
• Telephone expense R1 800

12.Rental income:

Move rents out one of their machines to ABC Limited on a monthly basis at R1 200 per month. The June 2023 rental income was received on the 28^th of June 2023.

13.Income tax expense:

Income tax for the current year has been correctly calculated and amounted to R269 061. The balance was still outstanding at the financial year-end.

14.Dividends:

The dividends reflected on the trial balance relate to dividends declared on the 28^thof June 2022 in respect of the June 2022 financial year-end. The dividends relating to the 2022 financial year end were paid on the 4^th of July 2022. Dividends of R60 000 were declared on 1^st May 2023 in respect of the year ended 30 June 2023 and paid for on the 26^th of June 2023. No transactions relating to the June 2023 financial yearend dividends have been recorded.

2.1) Calculate the profit or loss for the financial year ended 30 June 2023 that Move (Pty) Ltd will show in their annual financial stateme

2.2) Prepare the bank general ledger account in the accounting records of Move (Pty) Ltd for the financial year ended 30 June 2023.

2.3) Prepare the Statement of Financial Position of Move (Pty) Ltd for the financial year ended 30 June 2023 in accordance with International Financial Reporting Standards. Comparative figures are not required. Show all workings, and reference accordingly.

\begin{tabular}{|l|r|r|r|} \hline \multicolumn{1}{|c|}{ Account } & Note & \multicolumn{1}{c|}{Debit(R)} & \multicolumn{1}{c|}{Credit(R)} \\ \hline Share capital & 1 & & 800000 \\ \hline Retained income (1 July 2022) & & & 943050 \\ \hline Drawings & 2 & ? & \\ \hline Machinery - cost (1 July 2022) & 3 & 2500000 & \\ \hline Machinery-accumulateddepreciation(1July2022) & 3 & & 1000000 \\ \hline Vehicles - cost (1 July 2022) & 4 & 1200000 & \\ \hline Vehicles-accumulateddepreciation(1July2022) & 4 & & 430500 \\ \hline Trade debtors & 5 & 30000 & \\ \hline Bank & & 1372450 & \\ \hline Inventory & 6 & 250000 & \\ \hline Shareholders for dividends & 14 & & 45000 \\ \hline Trade payables & 7 & & 312000 \\ \hline Loan from Investor Bank: 8\% interest per annum & 8 & & ? \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|} \hline \multicolumn{1}{|c|}{ Account } & Note & Debit(R) & Credit(R) \\ \hline Revenue & & & 3480000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline Rental income & 12 & & 13200 \\ \hline Interest income & & & 12500 \\ \hline Cost of sales & & 1075000 & \\ \hline Depreciation expense & & ? & \\ \hline Electricity expense & 11 & 44000 & \\ \hline Fuel expense & 11 & 71500 & \\ \hline Levy expense & 9 & 22500 & \\ \hline Rent expense & 11 & 121000 & \\ \hline Salaries and wages & 11 & 330000 & \\ \hline Telephone expense & 11 & 19800 & \\ \hline & & 7036250 & 7036250 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline \multicolumn{1}{|c|}{ Account } & Note & \multicolumn{1}{c|}{Debit(R)} & \multicolumn{1}{c|}{Credit(R)} \\ \hline Share capital & 1 & & 800000 \\ \hline Retained income (1 July 2022) & & & 943050 \\ \hline Drawings & 2 & ? & \\ \hline Machinery - cost (1 July 2022) & 3 & 2500000 & \\ \hline Machinery-accumulateddepreciation(1July2022) & 3 & & 1000000 \\ \hline Vehicles - cost (1 July 2022) & 4 & 1200000 & \\ \hline Vehicles-accumulateddepreciation(1July2022) & 4 & & 430500 \\ \hline Trade debtors & 5 & 30000 & \\ \hline Bank & & 1372450 & \\ \hline Inventory & 6 & 250000 & \\ \hline Shareholders for dividends & 14 & & 45000 \\ \hline Trade payables & 7 & & 312000 \\ \hline Loan from Investor Bank: 8\% interest per annum & 8 & & ? \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|} \hline \multicolumn{1}{|c|}{ Account } & Note & Debit(R) & Credit(R) \\ \hline Revenue & & & 3480000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline Rental income & 12 & & 13200 \\ \hline Interest income & & & 12500 \\ \hline Cost of sales & & 1075000 & \\ \hline Depreciation expense & & ? & \\ \hline Electricity expense & 11 & 44000 & \\ \hline Fuel expense & 11 & 71500 & \\ \hline Levy expense & 9 & 22500 & \\ \hline Rent expense & 11 & 121000 & \\ \hline Salaries and wages & 11 & 330000 & \\ \hline Telephone expense & 11 & 19800 & \\ \hline & & 7036250 & 7036250 \\ \hline \end{tabular}