ONE [25] The transactions below relate to S ASH for the month ended 30 June 2021. Required: Analyse the above transactions in tabular form as follows: QUESTION TWO [35] Bongani Magwaza has been in business in his hometown of Ixopo since 1 April 2014. He decided to use 31 March as the financial year end for his business Bongas General Dealers. The following information was obtained from the accounting records of Bongas on the last day of the current financial year, 31 March 2019: Date Transactions Amount 2021 R Jun 01 S Ash deposited capital into the business bank account 80 000 05 The business obtained a loan from LTC Bank 15 000 07 Acquired a vehicle and settled the purchase price by cheque 25 000 08 Bought cleaning material from AD Suppliers on credit 500 10 Invoiced Dekker Hotel for cleaning services rendered 1 000 12 Received a cheque from Dekker Hotel and deposited it in the bank account 500 14 Paid Salaries by cheque 1 500 16 An advert was published in the daily news. This is payable in 30 days 250 25 S Ash transferred his personal equipment into the business 10 000 30 Stationery on hand 1 000 A/C.DEBIT A/C.CREDIT A = E + L 2 Bongas General Dealers Pre-adjustment trial balance as at 31 March 2019 Debits R Credits R Equipment at cost Accumulated depreciation: equipment Bank Fixed deposit (maturity date: 30 June 2022) Cash float Inventory: trade goods Debtors control Allowance for credit losses Creditors control Long term borrowings: W Bank Capital: Bonga Drawings Sales Cost of sales Interest on fixed deposit Rental income Administrative expenses Water and electricity Insurance Stationery Returns from debtors Salaries and wages 336 000 170 800 220 000 8 000 188 000 85 200 92 000 456 000 28 000 34 600 16 800 9 200 16 000 139 200 33 600 4 800 48 400 100 000 589 200 997 200 12 200 14 400 1 799 800 1 799 800 Additional information: 1. On 31 March 2019 a physical stock-take revealed that the value of trading stock on hand was R190 000, and stationery on hand was R3 200. 2. Employees salaries of R8 000 were not yet paid on 31 March 2019 3. The entitys fire insurance policy was entered into on 1 January 2019. The annual premium of R5 760 was paid for coverage until 31 December 2019. 3 4. A tenant moved into office space available for rent on 30 November 2018. The tenant prepaid the rent for 12 months. No deposit was required. 5. The equipment must be depreciated at the reducing balance method at 25% per year. No equipment was purchased nor sold during the financial year. 6. The fixed deposit was invested on 1 July 2017. Interest on the investment is provided for at 12% per year. 7. Included in the water and electricity expense above is an account of R3 200 that was paid for Bongas private residence. 8. The 11% long term borrowing was taken on 30 September 2018 for a period of 4 years. Provide for the outstanding interest. Repayment will begin on 1 July 2021. 9. Write-off a credit loss of R1 800 and increase the allowance for credit losses by R1 200. Required: Prepare the following for Heats Air Conditioners for the year ended 31 March 2019: (Show all workings and ignore comparative figures). 2.1 Statement of profit and loss and other comprehensive income, 2.2 Statement of changes in equity, and 2.3 Statement of financial position. QUESTION THREE [15] Stan and Ben are in partnership, sharing profits and losses in the ratio of their capital account balances at the beginning of the financial year. On 30 June 2019, Stan deposited an additional R150 000 into the partnerships bank account. The introduction of Stans capital has been correctly recorded. The following is an extract of relevant accounts from the trial balance at financial year end 31 December 2019: R Capital - Stan Capital - Ben Current account - Stan at 1 January 2019 credit balance Current account - Ben at 1 January 2019 debit balance Drawings - Stan Drawings Ben Profit for the year 450 000 300 000 37 500 12 000 48 450 32 250 937 500 4 Turnover/sales for the year 1 800 000 Additional information: The partnership agreement provided for the following: Interest on capital to be allowed at 10% per year. Interest to be provided at 12% per year on current account balances at the beginning of the year. Interest on drawings to be charged at 12% per year on daily balances. This was calculated as follows: Stan R3 825; and Ben R2 775. Salaries to be allowed as follows: Stan - R22 500 per month; and Ben R15 000 per month. Stan is to be allowed a commission equal to 5% of turnover for the year. Ben is to be allowed a bonus equal to 7,5% of the net profit after allowing for interest on capital. The remaining profits are to be shared in the ratio of the partners capital accounts at the beginning of the year. Required: Prepare the following ledger accounts for the year ended 31 December 2019: Appropriation account NB: The accounts must be properly balanced/closed. The detail column must show the contra account for each transaction. 5 QUESTION FOUR [25] The following information was obtained from the accounting records of First Ltd: Summarised financial position for year ended 31 December ASSETS 2019 R 2018 R Land and buildings Investments Machinery at carrying amount 104 865 Nil 6 500 95 470 1 100 1 600 Cost Accumulated depreciation 8 700 (2 200) 5 400 (3 800) Inventories Trade debtors Cash at bank 12 000 10 205 13 500 9 000 30 700 Nil TOTAL ASSETS 147 070 137 870 EQUITY & LIABILITIES Equity 100 070 78 470 Ordinary share capital Retained earnings 85 000 15 070 68 000 10 470 Liabilities 47 000 59 400 Long term loan Bank overdraft Trade creditors Income tax payable Dividends payable 20 000 Nil 6 600 2 000 18 400 30 000 700 9 200 4 100 15 400 TOTAL EQUITY AND LIABILITIES 147 070 137 870 6 Additional information: 1. The following was extracted from the statement of comprehensive income and statement of changes in equity for financial year ended 31 December 2019. Income: R Profit on sale of land and buildings 7 000 Profit on sale of machinery 300 Expenses: Depreciation 1 000 Administration expenses 29 730 Selling expenses 12 005 Loss on sale of investment 500 Interest expense 20 Taxation expense 18 000 Profit for the year 23 000 Appropriation: Dividends declared 18 400 2. The investments of the company were sold for R600 cash. 3. A portion of the land and buildings with a cost price of R11 000 was sold during the year for R18 000 cash. Additional land was purchased for R20 395 cash. 4. Machinery to the value of R6 400 was purchased for cash. Machinery with a carrying amount of R500 was sold at a profit of R300. 5. The company paid a portion of the long term liability. No further long term loans were taken. 6. The company issued new ordinary shares during the year. Required: Draft the statement of cash flows for the year ended 31 December 2019 method in compliance with international financial reporting standards in as much as the given information allows. The indirect method is in use. Show all working