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OUESTION 1 The treasure of living larger Sport Club requested your assistance in preparing the annual financial Living Larger Sport Club Statement of Financial position
OUESTION 1 The treasure of living larger Sport Club requested your assistance in preparing the annual financial Living Larger Sport Club Statement of Financial position as at 31 December 2017 R R ASSETS Non-current assets Land at cost Furniture Accumulated depreciation Investments Total non-current assets 250 000 14 000 (2000) 12 000 20 000 R 282 000 Current assets Inventories: Refreshments Prepaid expense: Stationery Membership fees receivables Bank 4 000 550 3 630 4 200 Total current assets Total assets EQUITY AND LIABILITIES Equity Accumulated funds 12 000 R294 380 82 690 Non-current liabilities Long-term borrowings(20% mortgage loan) 200 000 Current liabilities Payables for refreshments Membership fees received in advance VAT owing Total current liabilities Total liabilities Total equity and liabilities 1 400 2 970 7 320 11 690 211 690 R294 380 The following are the receipts and payments for the year ended 31 December 2018: Receipts R Payments R Entrance fees received 2 850 Mortgage bond ( 1 July 2018) 50 000 167 170 Salary of caretaker 36 000 Membership fees received Admission fees 3 420 Lime 2 280 6 840 Honorarium to treasurer 18 000 Refreshment sold 5 016 285 Fuel for lawnmower Donations received 24 000 114 Wages Old balls sold 25 000 3 500 Furniture (1 July 2018) Interest received 1 500 Travelling costs Rugby costs 570 Payables- Refreshments Interest paid 3 450 30 000 Stationery 2 565 South African revenue services 18 600 R188 910 R212 330 Additional information 1. On 31 December 2018, R 4 21 membership fees were receivable while R4 280 was received in respect of the following year. 2. Inventories on hand on 31 December 2018 amounted to: 1. R Stationery 600 Refreshments 1 600 Rugby balls 3. Payable for refreshments were R1 940 on 31 December 2018. 4. Depreciation on furniture has to be provided at 10% per year on cost. 5. The R20 000 is invested at FNB at 19.5% per annum. 6. Entrance fees must be capitalised. Required a) Prepare the refreshments trading statement for the year ended 31 December 2018 b) Prepare the statement of income for the year ended 31 December 2018. c) Prepare the statement of changes in equity for the year ended 31 December 2018 (10) [31] [9] QUESTION 1 (42 marks) Sales Cost of sales LETHABO LIMITED Statement of income for the year ended 31 December 2018 R 650 000 (350 000) 300 000 820 2 400 650 230 (3 450) (900) 860 250 50 86 000 2 400 660 (2100) 60 500 24 000 24 000 30 000 20 000 (21 600) 44 000 300 Donations income (20 000) Property rates 2 600 Compensation paid in accordance with a court order 15 000 Payment received from supplier breach of contract) (3 900) Unclaimed dividends (450) 830 Stationery consumed 640 Fuel 700 Water and electricity 635 Telephone (1 500) Profit with re measurement of financial assets Advertising expense Management services Fine for violating the companies Act Printing Dividends : Listed Unlisted Directors' remuneration Bad debts Postage Salaries and wages Auditor's remuneration Repairs Profit on sale of building Depreciation on machinery Membership fees Preference dividend: Paid Ordinary dividend: Paid Income tax expenses Rent income Interest expenses Traffic fines Additional information: 1. Retained earnings on 1 January 2018 amounted to R6 300 2. In the above-mentioned statement of income no provision was made for travelling costs of R550 for the director 3. Preference share form part of equity. 4. Issued share capital consists of 1 000 000 ordinary share 100 000 8% preference shares Required: A. Prepare the statement of comprehensive income of Lethabo Limited for the year ended 31 December 2018. B. Prepare the statement of change in equity of Lethabo Limited for the year ended 31 December 2018 to comply with the requirements of the Companies Act of 2008 and international financial reporting standards. OUESTION 1 The treasure of living larger Sport Club requested your assistance in preparing the annual financial Living Larger Sport Club Statement of Financial position as at 31 December 2017 R R ASSETS Non-current assets Land at cost Furniture Accumulated depreciation Investments Total non-current assets 250 000 14 000 (2000) 12 000 20 000 R 282 000 Current assets Inventories: Refreshments Prepaid expense: Stationery Membership fees receivables Bank 4 000 550 3 630 4 200 Total current assets Total assets EQUITY AND LIABILITIES Equity Accumulated funds 12 000 R294 380 82 690 Non-current liabilities Long-term borrowings(20% mortgage loan) 200 000 Current liabilities Payables for refreshments Membership fees received in advance VAT owing Total current liabilities Total liabilities Total equity and liabilities 1 400 2 970 7 320 11 690 211 690 R294 380 The following are the receipts and payments for the year ended 31 December 2018: Receipts R Payments R Entrance fees received 2 850 Mortgage bond ( 1 July 2018) 50 000 167 170 Salary of caretaker 36 000 Membership fees received Admission fees 3 420 Lime 2 280 6 840 Honorarium to treasurer 18 000 Refreshment sold 5 016 285 Fuel for lawnmower Donations received 24 000 114 Wages Old balls sold 25 000 3 500 Furniture (1 July 2018) Interest received 1 500 Travelling costs Rugby costs 570 Payables- Refreshments Interest paid 3 450 30 000 Stationery 2 565 South African revenue services 18 600 R188 910 R212 330 Additional information 1. On 31 December 2018, R 4 21 membership fees were receivable while R4 280 was received in respect of the following year. 2. Inventories on hand on 31 December 2018 amounted to: 1. R Stationery 600 Refreshments 1 600 Rugby balls 3. Payable for refreshments were R1 940 on 31 December 2018. 4. Depreciation on furniture has to be provided at 10% per year on cost. 5. The R20 000 is invested at FNB at 19.5% per annum. 6. Entrance fees must be capitalised. Required a) Prepare the refreshments trading statement for the year ended 31 December 2018 b) Prepare the statement of income for the year ended 31 December 2018. c) Prepare the statement of changes in equity for the year ended 31 December 2018 (10) [31] [9] QUESTION 1 (42 marks) Sales Cost of sales LETHABO LIMITED Statement of income for the year ended 31 December 2018 R 650 000 (350 000) 300 000 820 2 400 650 230 (3 450) (900) 860 250 50 86 000 2 400 660 (2100) 60 500 24 000 24 000 30 000 20 000 (21 600) 44 000 300 Donations income (20 000) Property rates 2 600 Compensation paid in accordance with a court order 15 000 Payment received from supplier breach of contract) (3 900) Unclaimed dividends (450) 830 Stationery consumed 640 Fuel 700 Water and electricity 635 Telephone (1 500) Profit with re measurement of financial assets Advertising expense Management services Fine for violating the companies Act Printing Dividends : Listed Unlisted Directors' remuneration Bad debts Postage Salaries and wages Auditor's remuneration Repairs Profit on sale of building Depreciation on machinery Membership fees Preference dividend: Paid Ordinary dividend: Paid Income tax expenses Rent income Interest expenses Traffic fines Additional information: 1. Retained earnings on 1 January 2018 amounted to R6 300 2. In the above-mentioned statement of income no provision was made for travelling costs of R550 for the director 3. Preference share form part of equity. 4. Issued share capital consists of 1 000 000 ordinary share 100 000 8% preference shares Required: A. Prepare the statement of comprehensive income of Lethabo Limited for the year ended 31 December 2018. B. Prepare the statement of change in equity of Lethabo Limited for the year ended 31 December 2018 to comply with the requirements of the Companies Act of 2008 and international financial reporting standards
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