QUESTION ONE

The following information relates to Stimulus Traders:

Balance at 31 December 2012	R
Trading inventories on 01 January 2012	15 000
Trading inventories on 31 December 2012	12 000
Inventory of stationary on 31 December 2012	1 500
Sales	166 000
Purchase	90 000
Sales Returns	3 000
Purchases Returns	5 500
Freight on purchases	3 000
Freight on sales	10 000
Import duty	1 000

Additional information:

The owner took goods worth R2 500 for personal use. This transaction had not been recorded.

Required:

1.1. Calculate Cost of Sales.

1.2. Calculate Gross Profit.

QUESTION TWO

The following information relates to ABC Pty Ltd, a business that manufactures electric products operating in Pretoria.

Statement of Financial Position Information as at 31 December 2015 and 2016

	2015 (R)	2016 (R)
Ordinary Shares Capital (R1)	400 000	500 000
Preference Share Capital (R0.50)	100 000	100 000
Share Premium	15 000	17 500
Retained Earning	25 000	115 000
Long Term Loan from AB bank	90 000	60 000
Land and Buildings at cost	300 000	320 000
Machinery and Equipment at cost	130 000	80 000
Machinery and Equipment: Accumulated Depreciation	43 000	49 000
Fixed Deposits (at Standard bank)	35 000	50 000
Inventory	31 000	50 000
Trade Debtors	40 000	35 000
Bank (Dr)	115 000	-
Petty Cash	5 000	5 000
Cash in Hand	-	4 500
Trade Creditors	18 000	25 000
Bank Overdraft	-	2 000
Income tax payable	15 000	13 000
Shareholders for dividends	15 000	25 000
Interest Payable	5 000	6 000

Extract of items disclosed in the Statement of Comprehensive Income for the year ended 31

December 2016:

Item	Amount (R)
Interest Income from fixed deposits	13 000
Depreciation Charge for the year	29 000
Loss of sale of machinery and equipment	1 500
Interest on long term loan	14 000
Income tax expense	47 000
Profit for the year	90 500
Ordinary dividends	20 000
Preference dividends	6 000

Additional Information:

1. No machinery and equipment were purchasing during the financial year. Machinery and equipment were sold for R85 500 of which R45 500 was on still outstanding.
2. The new property which was acquired is situated at Site 100 Thabo Sehume, Pretoria. The company plans to use it as its warehousing sites.
3. Inventory is recorded at cost.
4. The shares issued in March 2016.

Required:

Prepare the Statement of Cash Flows for ABC Pty Ltd for the year ended 31 December 2016 in compliance with the requirements of GAAP as stipulated in IAS 7.

NB: Use the Indirect method. Comparative figures and notes are not required.

QUESTION THREE

The following information was extracted from the book of XY Ltd for the year 30 September 2016. Extract of a Trial Balance as 30 September 2016

NOMIMAL SECTION	Debit (R)	Credit (R)
Sales	1 312 500
Cost of Sales	475 120
Commission		19 00
Rent	70 000
Salaries	130 400
Carriage on Sales	50 000
Carriage on Purchases	40 000
Bad debts	20 000
Electricity	46 500
Stationary	102 400
BALANCE SHEET SECTION
Land and Building	700 000
Shares on JSE	17 050
Debtors	180 636
Provision of bad debts		20 000
Bank	8 000
Petty Cash	450
Ordinary Share Capital		400 000
Share Premium		50 000
Retained Earnings- 1 October 2015		60 391
Long term loan		144 000
Creditors		103 026

Additional information:

1. An annual stock count at 30 September showed that the business had stock worth R15 150.
2. Write off a further R3 500 as bad debts.
3. Adjust the provision of bad debts to R23 500.
4. Profit for the year was R84 193.
5. Income tax was provided for as R52 576. It is a business for tax to be paid on the 1^st of October each year.
6. Dividends declared were R5 000.

Required:

Prepare a Statement of Financial Position as at 30 September 2016.

NB: Notes are not required. The statement must be prepared in accordance with GAAP or IFRS.