QUESTION B11(46 marks / 55 minutes)

The following information relates to Apple Close Corporation:

1.	Balances at 29 February 2004:	R
	Members contributions:
	A Adler	140 000
	P Peters	140 000
	O Oban	70 000
	Accumulated profit 28 February 2003	56 600
	General Reserve	82 000
	Loan from A Adler	70 000
	Interim profit distribution to members:
	A Adler	32 000
	P Peters	32 000
	O Oban	16 000
	Loan to P Peters	50 000
	Provision for bad debts	3 000
	Land and buildings at cost	210 000
	Equipment at cost	165 000
	Investment 50 000 ordinary shares of R1 each in UFO Limited
	at cost	130 000
	Inventories merchandise	140 500
	consumer goods	6 200
	Long-term loan AUS Bank	60 000
	Bills receivable	20 150
	Bills payable	15 360
	Accumulated depreciation on equipment	62 320
	Accrued expenses	6 800
	Prepaid expenses	3 500
	Ban overdraft	25 120
	Petty cash	700
	Trade accounts receivable	50 290
	Trade creditors	16 180
	Profit before taxation	179 380
	Provisional tax payments	70 420

2. Additional information:

2.1 The depreciation on equipment for the year amounted to R41 250.

2.2 There were no disposals of, or additions to the land and buildings and equipment during the year.

2.3 The market value of the shares in UFO Limited is R3.

2.4 The loan from A Adler is unsecured and an amount of R15 000 must be repaid during the next financial year.

2.5 The income tax for the year is estimated at R50 000.

2.6 A further profit distribution of R40 000 must be made to the members.

2.7 The long-term loan from AUS Bank is secured by a first mortgage over land and buildings.

Required:

(a) Draw up the balance sheet of Apple Close Corporation at 29 February 2004 according to generally accepted accounting practice.

(b) Draw up the statement of changes in equity of Apple Close Corporation for the year ended 29 February 2004.