The following are extracts from the financial records of ABC Ltd for the year ended 31...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following are extracts from the financial records of ABC Ltd for the year ended 31 August 2021. ABC Ltd Extract from the Statement of financial statement as at 31 August 2021 Bank Inventories - trade goods Trade receivables Trade payables Prepaid expenses: Accrued expenses: interest Accrued expenses; other SARS-income tax payable Dividends payable 31 August 2021 31 August 2020 - R - R Sales Cost of sales Gross profit Profit on sale of Equipment Depreciation Interest expense Income tax expense Profit for the year Additional information: ABC Ltd Extract from the Statement of profit or loss and other comprehensive income for the year ended 31 August 2021 50 000 22 000 77 000 44 000 1 800 1000 5700 8 000 1 500 1. The dividends declared for the current year is R2 400. R 20 000 30 000 69 000 46 000 1 200 2400 4 400 3 000 2 700 592 000 (301 000) 291 000 9 000 41 000 2600 15 200 110 300 Required: Prepare only the "Cash flows from operating activities" section of the statement of cash flows for ABC Ltd for the year ended 31 August 2021. Use the indirect method. Show all workings. Where applicable, round off calculations to the nearest Rand. (14) PART B A trial balance is a list of all accounts in the general ledger and their balances at a specified point in time or at a given date. All the debit balances are added together to arrive at an amount for "Total debits and all the credit balances are added together to arrive at the "Total credits". If the value of "Total Debits" is equal to the value of "Total credits" then this is commonly referred to as the trial balance - "balances" or "the trial balance is in equilibrium". This would mean that the method of the double entry system has been implemented accurately. However, it would be incorrect to believe that because the trial balance is in equilibrium there are no errors or omissions in that accounting system. There are errors and omissions that will not be identified by a trial balance that is in equilibrium. Required: Identify at least four types of errors and /or omissions that would NOT be identified by a trial balance that is in equilibrium. Provide a brief description of each one or present examples of transactions being recorded in a way that will still allow the trial balance to "balance". (16) The following are extracts from the financial records of ABC Ltd for the year ended 31 August 2021. ABC Ltd Extract from the Statement of financial statement as at 31 August 2021 Bank Inventories - trade goods Trade receivables Trade payables Prepaid expenses: Accrued expenses: interest Accrued expenses; other SARS-income tax payable Dividends payable 31 August 2021 31 August 2020 - R - R Sales Cost of sales Gross profit Profit on sale of Equipment Depreciation Interest expense Income tax expense Profit for the year Additional information: ABC Ltd Extract from the Statement of profit or loss and other comprehensive income for the year ended 31 August 2021 50 000 22 000 77 000 44 000 1 800 1000 5700 8 000 1 500 1. The dividends declared for the current year is R2 400. R 20 000 30 000 69 000 46 000 1 200 2400 4 400 3 000 2 700 592 000 (301 000) 291 000 9 000 41 000 2600 15 200 110 300 Required: Prepare only the "Cash flows from operating activities" section of the statement of cash flows for ABC Ltd for the year ended 31 August 2021. Use the indirect method. Show all workings. Where applicable, round off calculations to the nearest Rand. (14) PART B A trial balance is a list of all accounts in the general ledger and their balances at a specified point in time or at a given date. All the debit balances are added together to arrive at an amount for "Total debits and all the credit balances are added together to arrive at the "Total credits". If the value of "Total Debits" is equal to the value of "Total credits" then this is commonly referred to as the trial balance - "balances" or "the trial balance is in equilibrium". This would mean that the method of the double entry system has been implemented accurately. However, it would be incorrect to believe that because the trial balance is in equilibrium there are no errors or omissions in that accounting system. There are errors and omissions that will not be identified by a trial balance that is in equilibrium. Required: Identify at least four types of errors and /or omissions that would NOT be identified by a trial balance that is in equilibrium. Provide a brief description of each one or present examples of transactions being recorded in a way that will still allow the trial balance to "balance". (16)
Expert Answer:
Answer rating: 100% (QA)
PART A Prepare only the Cash flows from operating activities section of the statement of ca for ABC Ltd for the year ended 31 August 2021 Use the indirect method Show all workings Where applicable rou... View the full answer
Posted Date:
Students also viewed these accounting questions
-
The following are extracts from the financial statements for the year ended 31 January 20X3 of M: $'000 Issued ordinary shares of $1,200 Share premium account 50 Retained profit 25 Loan stock 80...
-
Part A The following are internal control procedures found in the purchases and payment process of your auditee, Integrated Measurement Systems Inc. Required: For each control procedure: a. Explain...
-
The following data come from the financial records of Adams Corporation for 2014. Sales .............. $720,000 Interest expense ......... 6,000 Income tax expense ......... 12,000 Net income...
-
What are some examples of artificial selection? How are artificial selection and natural selection similar? How are they different?
-
PM Computers is an international manufacturer of computer equipment and software. It is going to introduce a number of new products in the coming year, and it wants to develop marketing programs to...
-
JIT attempts to remove delays, which do not add value. How then does JIT cope with weather and its impact on crop harvest and transportation times?
-
The directors of Ufool Ltd are aware that a sizeable number of shareholders, although still a minority, are extremely unhappy with current dividend levels and are agitating for larger distributions....
-
U.S. companies lose $63.2 billion per year from workers with insomnia. Workers lose an average of 7.8 days of productivity per year due to lack of sleep (Wall Street Journal, January 23, 2013). The...
-
Find the value for x. C 8 E x+9 G D F 3x-3 4
-
During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.) Capital Asset Market Value Tax Basis Holding Period L stock $...
-
1. Exploring the context of the corporate culture at WorldCom, explain the philosophy of CEO Bernie Ebbers and how he pressured staff to cook the books. What roles did David Myers, Scott Sullivan,...
-
1. What would you do if you were in a work center with ethical and cultural differences? As an example, an organization where employees harbor unfair prejudices against cultures and religions other...
-
Carla Vista Co. reports the following account balances at December 31, 2022: Accounts payable $6,500 Accounts receivable 6,000 Cash 7,900 Intangible assets 23,600 Inventory 35,700 Long-term...
-
Ducati made a lot effort (the museum, the "World of Ducati," investment in R&D, etc.) to increase the willingness-to-pay (WTP), and therefore their differentiation advantage, for their products. What...
-
About how much do you think that you could earn now, without a college education? What type of career do you plan to pursue after graduation for accounting, and about how much do you expect to be...
-
In Plessy versus Ferguson, what were the arguments for "separate but equal" legislation? What were the arguments against this legislation? What is a dissent? What are the implications of Harlan's...
-
Home Modules Announcements Grades Folio Attempt IN PROGRESS Next Up: Submit Assignment 2 Calculate Gross Profit and Gross Profit% Inventory data for Williams Door Company for the month of October are...
-
CLASS PERIO Solving Linear Equations: Variable on Both Sides Solve each equation. 1) 6r+ 7 = 13 + 7r 3) -7x-3x+2=-8x-8 5)-14 +66+7-26=1+5b 7) n-3n = 14-4n 2) 13-4x=1-x 4)-8-x= x - 4x 6)n+2=-14-n 8)...
-
Distinguish among the three types of responsibility
-
Using the information in E7-1, assume that in July 2002, Voss Company incurs the following manufacturing overhead costs. Instructions (a) Prepare a flexible budget performance report, assuming that...
-
Samano Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from \($170,000\) to \($200,000\). Variable costs and their percentage relationship to sales...
Study smarter with the SolutionInn App