question 1

Designer Traders obtained an unsecured loan for an amount of R201 700 at the beginning of the current financial year from ATM Bank at an interest rate of 16% per annum. 50% of the loan was repaid on 1 March 2019 and the remainder needs to be repaid on 1 March 2020. The interest is not capitalised but paid to the bank on the day loan is repaid. Designer Traders current financial period ends on 31 May 2019 and according to the extract from pre-adjustment trial balance as at 31 May 2019, interest on loan amounted to R24 204.

The amount for interest payable to be shown in the statement of financial position for the year ended 31 May 2019 will be ...?

• A.

  R4 034

• B.

  R5 378

• C.

  R8 068

• D.

  R26 893

• E.

  R28 238

Question 2

Question 3

Majozi, the owner of MAJOZI Traders keep incomplete records of the business transactions. The following information is available. MAJOZI TRADERS Balances as at 30 June 2019: 2018 2019 R R Vehicles at cost 28 800 28 800 Furniture and equipment at cost. 26 500 26 500 Inventory.......... 21 770 ? Trade receivables control. 8 870 12 350 Bank (favourable).... 25 000 20 000 Long-term borrowings 30 000 15 000 Trade payables control. 9 500 12 700 Accrued expenses. 3400 2 300 Prepaid expenses. 365 360 Additional information: A physical inventory count revealed that the following was on hand on 30 June 2019: Inventory Stationery Packing materials R27 669 R625 R150 The total amount of trading inventory for Majozi Traders as at 30 June 2019 will be? A. R27 819 B. R26 894 C. R27 669 D. R21 770 E. R28 294 MIYOLA TRADERS Notes to the financial statements for the financial year ended 30 June 2020 Property, plant, equipment Land and buildings R 292 500 450 000 (157 500) (22 500) Carrying amount: Beginning of year Cost Accumulated depreciation Additions Depreciation Disposals Cost Accumulated depreciation Carrying amount: End of year Cost Accumulated depreciation ? ? ? Additional information Buildings are depreciated at 5% per annum on the straight-line method What will the carrying amount for land and buildings of Miyola Traders for the year ended 30 June 2020 be? A. R292 000 . . B. R427 500 . C. R450 000 D. R157 500 . E. R270 000