The following information pertains to Machivandihala Ltd and covers questions 1 12 Machivandihala Ltd is a company incorporated in 2016 and has a 28 February financial year end The companys accountant presented the following information to you as the accounting officer of the company MACHIVANDIHALA LTD EXTRACT OF BALANCES AS AT 28 FEBRUARY 2021 R Retained earnings (1 March 2020) 235 400 Share capital Ordinary shares (1 March 2020) 666 300 Inventory (1 March 2020) 37 500 Trade receivables control 263 800 Petty cash 6 400 Loan Nandoni Bank 110 900 SARS (income tax) (Dr) 28 900 Land and buildings at revaluation 1 041 100 Equipment at cost 542 100 Accumulated depreciation Equipment 77 800 Revaluation surplus (1 March 2020) 97 200 Income received in advance 7 500 Allowance for credit losses 5 700 Bank (Dr) 120 900 Trade payables control 215 300 Auditor's remuniration 39 400 Sales 1 341 000 Carriage on sales 2 200 Settlement discount received 1 900 Allowance for settlement discount granted 6 900 Purchases 256 000 Salaries and wages 250 600 Carriage on purchases 1 600 Directors remuneration 189 700 Settlement discount granted 4 600 Stationery 7 400 Telephone 5 600 Additional information 1 The allowance for credit losses must be adjusted to R6 600 A debtor who owes the business R10 300 was declared insolvent and must be written off as irrecoverable 2 The income tax for the financial year ended 28 February 2021 amounted to R121 100 and must still be recorded 3 Authorised share capital consists of 400 000 NPV ordinary shares Share capital stated above consists of ordinary shares issued at R3 5 per share On 01 December 2020, the directors issued 57 000 shares at R4 8 per share, the shares were taken up by the public on 1 February 2021, this transaction has not been recorded 4 The loan from Nandoni was acquired on 1 March 2018 at an interest rate of 8 per annum Interest on all loans for the current financial year has not yet been accounted for The loan is repayable in four annual equal instalments with effect from 1 March 2021 5 Directors made the following resolutions at year end Dividends declared at 80 cents per share and will paid at the end of April 2021 A total bonus amounting to R72 000 must be paid to directors on 30 April 2021 Only 30 of the auditors fees were paid at the end of the year, with the remainder to be paid the auditors during the second week of March 2021 The above transactions have not been recorded 6 Provision of R38 400 must still be made for depreciation on equipment 7 Inventory on 28 February 2021 consisted of the following Inventory (stock) on hand R45 000 Stationary on hand R 4 400 8 The revaluation of land for the current year resulted in a revaluation surplus amounting to R99 000 QUESTION 6 Which alternative represents the correct amount for credit losses in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021 A 22 600 B 23 100 C 10 700 D 11 700 E 22 100 F 11 200 QUESTION 7 Which alternative represents the correct accounting treatment of carriage on sales amount in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021 A Added to the settlement discount granted B Disclosed a an expense under distribution, administrative and other expenses C Added to purchases amount D Deducted from revenue amount E Deducted from cost of sales amount F Added to the cost of sales amount QUESTION 8 Which alternative represents the correct amount for stationary expense in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021 A 2 300 B 3 700 C 7 400 D 6 700 E 8 100 F 3 000 QUESTION 9 Which alternative represents the correct amount for telephone expense in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021 A 2 600 B 5 200 C 4 600 D 5 100 E 6 200 F 5 600 QUESTION 10 Which alternative represents the correct amount for interest on loan in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021 A 9 584 B 8 872 C 8 208 D 9 548 E 7 600 F 8 827

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The following information pertains to Machivandihala Ltd and covers questions 1 12: Machivandihala Ltd is a company incorporated in 2016 and has a 28 February

The following information pertains to Machivandihala Ltd and covers questions 1 12:

Machivandihala Ltd is a company incorporated in 2016 and has a 28 February financial year-end. The companys accountant presented the following information to you as the accounting officer of the company:

MACHIVANDIHALA LTD

EXTRACT OF BALANCES AS AT 28 FEBRUARY 2021:
	R
Retained earnings (1 March 2020)	235 400
Share capital: Ordinary shares (1 March 2020)	666 300
Inventory (1 March 2020)	37 500
Trade receivables control	263 800
Petty cash	6 400
Loan: Nandoni Bank	110 900
SARS (income tax) (Dr)	28 900
Land and buildings at revaluation	1 041 100
Equipment at cost	542 100
Accumulated depreciation: Equipment	77 800
Revaluation surplus (1 March 2020)	97 200
Income received in advance	7 500
Allowance for credit losses	5 700
Bank (Dr)	120 900
Trade payables control	215 300
Auditor's remuniration	39 400
Sales	1 341 000
Carriage on sales	2 200
Settlement discount received	1 900
Allowance for settlement discount granted	6 900
Purchases	256 000
Salaries and wages	250 600
Carriage on purchases	1 600
Directors remuneration	189 700
Settlement discount granted	4 600
Stationery	7 400
Telephone	5 600

Additional information:

1. The allowance for credit losses must be adjusted to R6 600. A debtor who owes the business R10 300 was declared insolvent and must be written off as irrecoverable.

2. The income tax for the financial year ended 28 February 2021 amounted to R121 100 and must still be recorded.

3. Authorised share capital consists of 400 000 NPV ordinary shares. Share capital stated above consists of ordinary shares issued at R3.5 per share. On 01 December 2020, the directors issued 57 000 shares at R4.8 per share, the shares were taken up by the public on 1 February 2021, this transaction has not been recorded.

4. The loan from Nandoni was acquired on 1 March 2018 at an interest rate of 8% per annum. Interest on all loans for the current financial year has not yet been accounted for. The loan is repayable in four annual equal instalments with effect from 1 March 2021.

5. Directors made the following resolutions at year end

Dividends declared at 80 cents per share and will paid at the end of April 2021
A total bonus amounting to R72 000 must be paid to directors on 30 April 2021
Only 30% of the auditors fees were paid at the end of the year, with the remainder to be paid the auditors during the second week of March 2021.

The above transactions have not been recorded.

6. Provision of R38 400 must still be made for depreciation on equipment.

7. Inventory on 28 February 2021 consisted of the following:

Inventory (stock) on hand R45 000
Stationary on hand R 4 400

8. The revaluation of land for the current year resulted in a revaluation surplus amounting to R99 000.

QUESTION 6

Which alternative represents the correct amount for credit losses in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021?

A. 22 600
B.23 100
C.10 700
D.11 700
E.22 100
F.11 200

QUESTION 7

Which alternative represents the correct accounting treatment of carriage on sales amount in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021?

A.Added to the settlement discount granted
B.Disclosed a an expense under distribution, administrative and other expenses
C.Added to purchases amount
D. Deducted from revenue amount
E.Deducted from cost of sales amount
F.Added to the cost of sales amount

QUESTION 8

Which alternative represents the correct amount for stationary expense in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021?

A.2 300
B.3 700
C.7 400
D.6 700
E.8 100
F.3 000

QUESTION 9

Which alternative represents the correct amount for telephone expense in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021?

A.2 600
B. 5 200
C.4 600
D. 5 100
E. 6 200
F.5 600

QUESTION 10

Which alternative represents the correct amount for interest on loan in the statement of profit or loss and other comprehensive income of Machivandihala Ltd for the year ended 28 February 2021?