QUESTION 4 (25 marks) The following is the abridged statement of comprehensive income of Sunlite Ltd for the year ended 31st March 2020 and 2019. 2020 N$ 2019 N$ 3 862 500 3012 186 750 165 Profit from operations 000 Dividends received 300 Profit before tax Income tax 300) Profit for the period 000 4 049 250 (1 636 750) 3 177 300 (1 313 2 412 500 1 864 The issued ordinary share capital of Sunlite Ltd on 1st April 2018 was 1 800 000 shares of N$1 each. On 31st July 2018 the company issued 450 000 shares for cash. On 1st August 2019 the company made a bonus issue of three shares for every ten held. On 31st December 2019 a rights issue was made of one share for every nine held at 5 percent less than market value Dividends of N$1 100 000 (2012 - N$950 000) were paid to ordinary shareholders on 31st March 2020. Non-cumulative 10% preference dividends paid were N$100 000 (2019) and N$100 000 for the year ended 31st March 2020. QUESTION 5 (20 marks) Prosperous Limited is a listed company that creates, and patents ground-breaking new drugs based in Windhoek, Namibia. In order to encourage the rapid innovation required in the current epidemic situation, and which is key in the pharmaceuticals industry, Prosperous provides its researchers with a number of benefits above industry norm. The following tables relates to employees for the year ended 30 June 2021 Employee Category Grossary per Number of employees Number of including formale employees omployees Directors Researchers 75 La assistants N$ 158 000 female year B NS 562 000 NS 302 000 25 21 Note 1: Of the 40 laboratory assistants, 11 assistants are expected to resign with effect from 1 July 2021 (5 of who are female). No other employees are expected to resign. Employee Category Maximum lave tocamy fonand days feared in Cument year days year days Maximum lowed Levesken in current year allowed per Directors Researchers Lab assistants 22 24 18 15 13 12 Leave pay. The company policy is that all leave is accumulating for 1 year but is non-vesting and the leave that may be carried forward is subject to maximum limits. Past experience suggests that only 50% of the directors will use the past leave due to them, while researchers and laboratory assistants still employed in the 2022 financial year will use 90%. Maternity leave. In order to encourage the job satisfaction and productivity of female employees, female employees are allowed 90 days of fully paid maternity leave per annum. This leave is non- accumulating and is unable to be paid out in cash if not taken. The recently married females' employees (8 in number) are excited about the benefit. Assume a 365-day year and a 5-day working week. REQUIRED: Prepare all the journals or reasons why journals are not appropriate that would need to be processedot processed by Prosperous Limited in order to account for the information above for the year ended 30 June 2021. (20 marks) END OF QUESTION PAPER QUESTION 4 (25 marks) The following is the abridged statement of comprehensive income of Sunlite Ltd for the year ended 31st March 2020 and 2019. 2020 N$ 2019 N$ 3 862 500 3012 186 750 165 Profit from operations 000 Dividends received 300 Profit before tax Income tax 300) Profit for the period 000 4 049 250 (1 636 750) 3 177 300 (1 313 2 412 500 1 864 The issued ordinary share capital of Sunlite Ltd on 1st April 2018 was 1 800 000 shares of N$1 each. On 31st July 2018 the company issued 450 000 shares for cash. On 1st August 2019 the company made a bonus issue of three shares for every ten held. On 31st December 2019 a rights issue was made of one share for every nine held at 5 percent less than market value Dividends of N$1 100 000 (2012 - N$950 000) were paid to ordinary shareholders on 31st March 2020. Non-cumulative 10% preference dividends paid were N$100 000 (2019) and N$100 000 for the year ended 31st March 2020. QUESTION 5 (20 marks) Prosperous Limited is a listed company that creates, and patents ground-breaking new drugs based in Windhoek, Namibia. In order to encourage the rapid innovation required in the current epidemic situation, and which is key in the pharmaceuticals industry, Prosperous provides its researchers with a number of benefits above industry norm. The following tables relates to employees for the year ended 30 June 2021 Employee Category Grossary per Number of employees Number of including formale employees omployees Directors Researchers 75 La assistants N$ 158 000 female year B NS 562 000 NS 302 000 25 21 Note 1: Of the 40 laboratory assistants, 11 assistants are expected to resign with effect from 1 July 2021 (5 of who are female). No other employees are expected to resign. Employee Category Maximum lave tocamy fonand days feared in Cument year days year days Maximum lowed Levesken in current year allowed per Directors Researchers Lab assistants 22 24 18 15 13 12 Leave pay. The company policy is that all leave is accumulating for 1 year but is non-vesting and the leave that may be carried forward is subject to maximum limits. Past experience suggests that only 50% of the directors will use the past leave due to them, while researchers and laboratory assistants still employed in the 2022 financial year will use 90%. Maternity leave. In order to encourage the job satisfaction and productivity of female employees, female employees are allowed 90 days of fully paid maternity leave per annum. This leave is non- accumulating and is unable to be paid out in cash if not taken. The recently married females' employees (8 in number) are excited about the benefit. Assume a 365-day year and a 5-day working week. REQUIRED: Prepare all the journals or reasons why journals are not appropriate that would need to be processedot processed by Prosperous Limited in order to account for the information above for the year ended 30 June 2021. (20 marks) END OF QUESTION PAPER