.. MTC - Wear You... LTE

MTC - Wear You... LTE Q) 11:41 @ 38% Question I (25 Marks: 50 minutes) VIRTUAL AIR (PTY) LTD- iS a small company Which. because Of its aggressive advertising campaigns. has a significant profile. The ccynpany engaged in manufacturing Of gas filled hot air balloons. At 31 December 2020 (the company's year- end is 31 December) the following trial balance was extracted from its books: Account details Bank overdrafts Fumiture and Office equipment at cost Listed hvestment at cost Loan secured by notarial bond Loose tools. valuation Accumulated depreciation: ftMniture and office equipment Accumulated depreciation: Vehicles Provisional tax paid Unlisted investments Retained income Stated capital (Authorised share capital Of 500 000 share Of no par value) Inventories Accounts payaNe Accounts Vehicles at cost 7 266 19 725 5120 125000 6 225 10 250 11 2 200 51 163 193 621 280 473 123 439 197747 Most Of the closing entries had been passed already. You are able to ascertain that: o The depreciation rates are applicabk: o Furniture and office equipment-10% on the straight method Vehicles 25% on the straight line method The "Sted were acquired for speculative purposes. are valued at lower of cost and net realisable value On a FIFO basis An interim dividend Of NS 5 000 was declared and paid on 01 October 2020 and a final dividend Of NS 5 000 was declared on 30 December 2020. ms dividend be paid on 18 January 2021. Normal taxation amounted to NS23 441 _ The loan Of NS 125 000 is to be repaid in five (5) years' time and is secured by a notarial band. REQUIRED: prepare the statement of financial position for "VIRTUAL AIR (PTY) LTD' as at 31 December 2020 to comply with the requirements of IFRS and Companies Act. (10 marks) prepare the following accounting policies and to comply with the requirements Of IFRS Cornpanies Act to accornpany the financial statements With regard to: (15 m arks) 2.2 2.3 2.4 Property. plant and muipment Long-term Inventories Listed investments