Question 3 (35 Marks) Ballistic Limited is a listed company on the Namibia Stock Exchange with...

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Question 3 (35 Marks) Ballistic Limited is a listed company on the Namibia Stock Exchange with a year-end of 31 July. The following balances were extracted from it's ledgers. Trial Balance as at 31 July 2021 Dr Cr N$'000 N$000 Share Capital 50,000 Share premium 25,000 Revaluation Surplus at 1 August 2020 10,000 Land and Building (Cost) 130,000 Building-Accumulated depreciation at 1 August 2020 22,500 Plant and equipment (Cost) 32,000 P&M Accumulated depreciation at 1 August 2020 18,000 Discount settlement received 30 Discount settlement granted Trade and other receivables 50 20,280 Trade and other payables 8,725 5% Borrowing: AB bank 20,000 Cash and Cash equivalents 2,213 Retained earnings at 1 August 2020 12,940 Sales 110,926 Purchases 67,231 Distribution costs 8,326 Administrative expenses 7,741 Inventories at 1 August 2020 7,280 Dividend paid 3,000 278,121 278,121 Adjustments: 1) The inventories at the close of business on 31 July 2021 cost N$9,420,000. 2) Depreciation is to be provided for the year to 31 July 2021 as follows: i. Buildings 4% per annum on straight-line basis, all to be allocated to administrative expenses. ii. Plant and equipment 20% per annum reducing balance basis to be apportioned as follows: Cost of sales: 70% Distribution costs: 20% Administrative expenses: 10% 3) Land, which is non-depreciable is included in the trial balance at a value of NS40 000 000 and it is to be revalued to N$54 000 000. This revaluation is to be included in the financial statements for the year ended 31 July 2021. 4) It has been decided to write off a debt of N$540 000 which will be charged to administrative expenses. 5) Included within distribution costs is N$2 160 000 relating to an advertising campaign that will run from 1 January 2021 to 31 December 2021. 6) The loan interest has not yet been accounted for. Question 3 (35 Marks) Ballistic Limited is a listed company on the Namibia Stock Exchange with a year-end of 31 July. The following balances were extracted from it's ledgers. Trial Balance as at 31 July 2021 Dr Cr N$'000 N$000 Share Capital 50,000 Share premium 25,000 Revaluation Surplus at 1 August 2020 10,000 Land and Building (Cost) 130,000 Building-Accumulated depreciation at 1 August 2020 22,500 Plant and equipment (Cost) 32,000 P&M Accumulated depreciation at 1 August 2020 18,000 Discount settlement received 30 Discount settlement granted Trade and other receivables 50 20,280 Trade and other payables 8,725 5% Borrowing: AB bank 20,000 Cash and Cash equivalents 2,213 Retained earnings at 1 August 2020 12,940 Sales 110,926 Purchases 67,231 Distribution costs 8,326 Administrative expenses 7,741 Inventories at 1 August 2020 7,280 Dividend paid 3,000 278,121 278,121 Adjustments: 1) The inventories at the close of business on 31 July 2021 cost N$9,420,000. 2) Depreciation is to be provided for the year to 31 July 2021 as follows: i. Buildings 4% per annum on straight-line basis, all to be allocated to administrative expenses. ii. Plant and equipment 20% per annum reducing balance basis to be apportioned as follows: Cost of sales: 70% Distribution costs: 20% Administrative expenses: 10% 3) Land, which is non-depreciable is included in the trial balance at a value of NS40 000 000 and it is to be revalued to N$54 000 000. This revaluation is to be included in the financial statements for the year ended 31 July 2021. 4) It has been decided to write off a debt of N$540 000 which will be charged to administrative expenses. 5) Included within distribution costs is N$2 160 000 relating to an advertising campaign that will run from 1 January 2021 to 31 December 2021. 6) The loan interest has not yet been accounted for.