Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 (45 marks) SASCON Ltd places the following information at your disposal: Trial balance on 30 June 20.6 N$ Vehicles at cost Equipment at

image text in transcribedimage text in transcribedimage text in transcribed

Question 2 (45 marks) SASCON Ltd places the following information at your disposal: Trial balance on 30 June 20.6 N$ Vehicles at cost Equipment at cost Accumulated depreciation: Vehicles Accumulated depreciation: Equipment Debtors control Allowance for credit losses Provisional tax payments Retained earnings (1 July 20.5) Sales Commission received Auditors' remuneration (N$2 000 for fees and N$400 for costs 79 450 29 200 14 600 9 300 12 745 540 70 600(DR) 8 047 904 600 6 400 Bank charges Salaries Irrecoverable debt Loss on sale of asset Distribution costs Interest on overdraft Interest on mortgage loan Commission paid to sales personnel Ordinary dividends Directors' remuneration (for executive directors) Dividends received on listed investment Electricity and water Gross profit 2 400 206 16 000 493 702 880 273 2 500 840 11 050 7450 1 075 2 350 184 140 The following information must still be taken into consideration: 1. One of the non-executive directors has not yet received his remuneration of N$1 500. 2. Account received from the municipality for water and electricity - not yet paid N$124. 3. The accounting policy of the company stipulates, amongst others, that depreciation on vehicles should be calculated at 10% per annum on cost of vehicles and 15% per annum on the carrying value of equipment. 4. Additional credit losses of N$132 must be written off. The allowance for credit losses must be adjusted to N$450. 5. A final dividend of 63c per share was declared. 6. The normal income tax for the accounting period amounts to N$72 000. 7. The company is registered with 100 000 ordinary shares of NSS each, of which 50 000 ordinary shares were issued. 8. The current market price per share as at 30 June 20.6 is N$ 9 each. 3 9. The authorised share capital consists of ordinary shares only. REQUIRED: 1. Prepare the statement of profit or loss and other comprehensive income of the company according to the function of expenses method for the year ended 30 June 20.6. (15 marks) 2. Prepare an extracted statement of financial position as at 30 June 20.6 to comply with the requirements of IFRS and Companies Act. (15 marks) 3. Disclose the note for following notes to comply with the requirements of IFRS and Companies Act of 2008. (10 marks) 3.1 Summary of significant accounting policies 3.2 Property, plant and equipment 3.3 Trade and other receivables 3.4 Revenue 4. Calculate the following ratios: Gross profit margin (1 marks) 4.2 Earnings per share (1 marks) 4.3 Price Earnings ratio (1 marks) 5. Explain the purpose of performing the above ratios. (2 marks) 4.1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

9th Edition

1265672008, 978-1265672003

More Books

Students also viewed these Accounting questions