Please note there is am error on the Extract of balances. This is the correct amounts

Bank (dr) 45 820

Instead of

Bank (cr) 820

On additional information 2.4

The interest due from Y Yellow that has not been taken into account. Instead of interest due to Y Yellow.

Given information for questions 1, 2, 3 and 4: The following information pertains to YBlue Close Corporation for the financial year ended 31 July 2020: 1. EXTRACT of balances at 31 July 2020 R Member's contribution: Y Yellow 270 000 Member's contribution: B Blue 110 000 Retained earnings (31 July 2019) 24 950 Revaluation reserve 34 000 Loan from Y Yellow 85 000 Loan to B Blue 60 000 Interim profit distribution to members. 48 000 Allowance for credit losses. 1 170 Land and buildings at cost. 300 000 Equipment at cost 208 000 Investment (fixed deposit at Blond Bank) 90 000 Inventory: merchandise 101 980 Inventory: consumables 3 460 Long-term loan 48 000 Bills receivable 11 510 Bills payable 8 910 Accumulated depreciation: Equipment 38 880 Accrued expenses 4 320 Prepaid expenses. 1935 Bank (Cr) 820 Petty cash 435 Interest on loan 1 080 Debtors control 33 680 Creditors control 9 690 SARS (income tax) (dr) 40 500 Profit before tax (before any applicable adjustments). 311 480 2. Additional Information 2.1 In addition to the interim profit distribution the following needs to be paid to members: Y Yellow: Members distribution R27 000 B Blue: Members distribution R52 500 2.2 SA normal tax for the financial year amounted to R37 150. 2.3 The long-term loan was acquired from Pretty Bank on 1 May 2018 at 12% interest per annum, payable at the end of the year. A further loan of R R12 000 was received from Pretty Bank on 01 October 2019. The full loan must be repaid in 6 annual instalments with the first instalment due on 1 March 2021. The loan is unsecured. The interest on loan has not yet been taken into account in arriving at the profit before tax. 2.4 Interest on the loan from Y Yellow is charged at 12% per annum and is capitalised at the end of each financial year end. The interest that is due to Y Yellow has not been taken into account in this current year. The loan from Y Yellow is repayable in full on 31 July 2029. QUESTION 1 Which one of the following alternatives represents the correct amount that must be disclosed as retained earnings in the statement of financial position of YBlue CC as at 31 July 2020? 1. R131 110 2. R156 060 3. R141 310 4. R145 860 QUESTION 2 Which one of the following alternatives represents the correct amount that must be disclosed as non-current assets in the statement of financial position of YBlue CC as at 31 July 2020? 1. R508 000 2. R598 000 3. R559 120 4. R469 120 QUESTION 3 Which one of the following alternatives represents the correct amount that must be disclosed as current assets in the statement of financial position of YBlue CC as at 31 July 2020? 1. 2. 3. R261 000 R298 150 R45 955 R257 540 QUESTION 4 Which one of the following alternatives represents the correct amount that must be disclosed as current liabilities in the statement of financial position of YBlue CC as at 31 July 2020? 1. R106 860 2. R110 420 3. R22 920 4. R114 860 Given information for questions 1, 2, 3 and 4: The following information pertains to YBlue Close Corporation for the financial year ended 31 July 2020: 1. EXTRACT of balances at 31 July 2020 R Member's contribution: Y Yellow 270 000 Member's contribution: B Blue 110 000 Retained earnings (31 July 2019) 24 950 Revaluation reserve 34 000 Loan from Y Yellow 85 000 Loan to B Blue 60 000 Interim profit distribution to members. 48 000 Allowance for credit losses. 1 170 Land and buildings at cost. 300 000 Equipment at cost 208 000 Investment (fixed deposit at Blond Bank) 90 000 Inventory: merchandise 101 980 Inventory: consumables 3 460 Long-term loan 48 000 Bills receivable 11 510 Bills payable 8 910 Accumulated depreciation: Equipment 38 880 Accrued expenses 4 320 Prepaid expenses. 1935 Bank (Cr) 820 Petty cash 435 Interest on loan 1 080 Debtors control 33 680 Creditors control 9 690 SARS (income tax) (dr) 40 500 Profit before tax (before any applicable adjustments). 311 480 2. Additional Information 2.1 In addition to the interim profit distribution the following needs to be paid to members: Y Yellow: Members distribution R27 000 B Blue: Members distribution R52 500 2.2 SA normal tax for the financial year amounted to R37 150. 2.3 The long-term loan was acquired from Pretty Bank on 1 May 2018 at 12% interest per annum, payable at the end of the year. A further loan of R R12 000 was received from Pretty Bank on 01 October 2019. The full loan must be repaid in 6 annual instalments with the first instalment due on 1 March 2021. The loan is unsecured. The interest on loan has not yet been taken into account in arriving at the profit before tax. 2.4 Interest on the loan from Y Yellow is charged at 12% per annum and is capitalised at the end of each financial year end. The interest that is due to Y Yellow has not been taken into account in this current year. The loan from Y Yellow is repayable in full on 31 July 2029. QUESTION 1 Which one of the following alternatives represents the correct amount that must be disclosed as retained earnings in the statement of financial position of YBlue CC as at 31 July 2020? 1. R131 110 2. R156 060 3. R141 310 4. R145 860 QUESTION 2 Which one of the following alternatives represents the correct amount that must be disclosed as non-current assets in the statement of financial position of YBlue CC as at 31 July 2020? 1. R508 000 2. R598 000 3. R559 120 4. R469 120 QUESTION 3 Which one of the following alternatives represents the correct amount that must be disclosed as current assets in the statement of financial position of YBlue CC as at 31 July 2020? 1. 2. 3. R261 000 R298 150 R45 955 R257 540 QUESTION 4 Which one of the following alternatives represents the correct amount that must be disclosed as current liabilities in the statement of financial position of YBlue CC as at 31 July 2020? 1. R106 860 2. R110 420 3. R22 920 4. R114 860