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 $2021$

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On $31$ December $2021$ the property was re$-$valued upwards by R$300000$ using the replacement value method. This revaluation still has to be recorded.

On $1$ December $2021,$ Kinta Baloyi Ltd received cash for $125000$ shares issued at R$2$ each, and all the shares were allotted on this day. This issue has not yet been recorded.

On $31$ December $2021$ the directors declared a dividend of $20$ cents per share on all the issued shares, including those issued on $1$ December $2021.$ No entries have yet been made for this.

In drafting the trial balance, all the expenses of Kinta Baloyi Limited had been allocated to the following four functions:

Cost of sales,

Distribution costs,

Operating costs, and

Administration costs

The above costs reflected on the trial balance include the following:

Depreciation on the sales department equipment, R$55000$

Depreciation on the office furniture and equipment, R$65000$

Salaries of the sales staff, R$220000$

Salaries of the office staff, R$200000$

REQUIRED:

a$).$ Prepare general journal entries on $31$ December $2021$ for additional information numbers $1,2,3,4$ and $5.$ You are not required to prepare the closing transfers for the write down of inventory and ordinary dividends accounts. $($Dates and narrations may be omitted.$)$

b$).$ Prepare the statement of comprehensive income of Kinta Baloyi Limited for the year ended $31$ December $2021$ in conformity with International Financial Reporting Standards. $($Show your calculations in brackets.$)$

c$.)$ Prepare the statement of changes in equity of Kinta Baloyi Limited for the year$-$ended $31$ December $2021$ in conformity with International Financial Reporting Standards.

d$).$ Prepare the statement of financial position of Kinta Baloyi Limited at $31$ December $2021$ in conformity with International Financial Reporting Standards. $($Show your calculations in brackets.$)$

END OF PAPER