On $1$ January $2020,$ a further $100000$ ordinary shares were issued and allotted at $R17,50$ per

share. The costs arising from the issue of the ordinary shares were R$189750($including VAT$).$

The accountant recorded the following in the accounting records:

The following dividends were paid during the year:

On $30$ June $2020$ on the $8\%-$preference shares

On $31$ December $20$x$19,$ an interim dividend on the ordinary shares

The directors recommended a final dividend of $14$ cents per ordinary share which will be paid

on $1$ August $2020.$

The $8\%$ debentures were already issued on $1$ July $2018.$

The following interest was paid during the year:

Debentures

R$36500$

Bank overdraft

On $1$ July $2019,$ a vacant stand adjacent to the existing property was purchased, which was

financed in full through the acquisition of a further mortgage bond of R$1500000$ from Finrite

Financers at an annual interest rate of $7,5\%.$ The loan is repayable in $5$ equal annual

instalments, which includes capital and interest. The accountant has correctly entered the

acquisition of the property and the loan in the accounting records. The following repayment

schedule is applicable:

On $1$ March $2020,$ a new machinery item $($allocated to plant and equipment$)$ was purchased

for cash at an invoice price of R$472075$ and correctly entered in the accounting records. On

$30$ June $2020$ it was determined that the recoverable amount on another machinery item was

lower than its carrying amount. The subsequent impairment of the machinery item created a

loss R$190000.$ This information still has to be entered into the accounting records.

On $31$ January $2020,$ one of the company's vehicles was destroyed in a fire on the premises.

This vehicle's original cost price was R$265000($excluding VAT$)$ and its carrying value on $1$

July $2019$ was R$208356.$ As the vehicle was destroyed by the fire, the insurance company

paid out an amount of R$138575($including VAT$),$ in full and final settlement. On $1$ March $20\backslash$times $20$

a new vehicle was purchased for cash at R$575000($excluding VAT$).$ The accountant only

recorded the following in the accounting records: On $4$ July $2020,$ the business received a letter from the lawyer of Receivable $Q,$ who owed

R$117500.$ This was to inform Alphabet Ltd that she was declared insolvent. The company

accepted the lawyer's offer of R$42500$ worth of inventories in part payment of her account.

Her estate will pay out $65$ cents in the rand on the amount still owing but this will only be

received in March $20$x$21.$ The balance must be written off as irrecoverable. No entries have

been made to record any of these transactions.

Assume a correctly calculated amount for distribution costs, administrative and other expenses

of R$1788068.$ This amount includes any adjustment from the information provided.

REQUIRED:

a$)$ Present and disclose the abovementioned information in the Statement of Profit and

Loss of Alphabet Ltd for the year ended $30$ June $2020.$

b$)$ Present and disclose the abovementioned information in the Statement of Changes in

Equity of Alphabet Ltd for the year ended $30$ June $2020.$

c$)$ Calculate the amounts for the following line items in the Statement of Financial Position

of Alphabet Ltd as at $30$ June $20$x$20$:

Other financial investments

Inventories

Cash and cash equivalents

Long term borrowings

Shareholders for dividends Included in the salaries and wages is R$80000$ paid to the managing director for her services

as chief executive officer

Directors' remuneration was paid to non$-$executive directors for attending board meetings.

Auditor's remuneration is made up as follows:

For audit

Secretarial work

Expenses

R$140000$

$13000$

$4500$

$157500$

The following items were included in general expenses:

Electricity

R$120000$

Donations

$30000$

${150000}_{{?}_{?}}$

ComADDITIONAL INFORMATION:

Unless stated otherwise, the following information has not yet been accounted for in the accounting

records of Alphabet Ltd:

Gross profit percentage on turnover amounts to $50\%.$

Share capital consists of the following:

Authorised

$1000000$ Ordinary shares with no par value

$1500008\%-$Preference shares with no par value $($part of equity$)$

Issued

$700000$ Ordinary shares with no par value

R$9400000$

$1200008\%-$Preference shares $($part of equity$)$

$1300000$