QUESTION $1$

$[30$ MARKS$)$

Kinta Baloyi Limited has an authorised share capital of $2500000$ ordinary shares of no$-$par value, of which $600000$ had already been issued by the time the trial balance was prepared. The financial director requests your accounting knowledge in preparing the financial statements for the year ended $31$ December $2021,$ and provides you with the following information:

Trial balance at $31$ December $2021$

Additional information:

I. On $31$ December $2021$ it was estimated that the inventory has a net realisable value of R$180000.$ No entries have yet been made for this.

$2.$ The loan from SABA Bank was acquired on $1$ January $2020$ and is repayable in full on $1$ January $2022.$ The Interest is payable annually in arrears on $1$ January. Provide for the interest outstanding on the loan for the current financial period.