The following information pertains to Zambezi Traders CC

1.Balances at 28 February 2022:

	R
Members contribution: C Carl	150000
Members contribution: S Joels	220000
Retained earnings (1 March 2021)	66600
Revaluation surplus	72000
Loan from C Carl	80000
Distribution to member: C Carl	33000
Distribution to member: S Joels	35000
Loan to S Joels	40000
Land and buildings at valuation (cost R128 000)	200000
Equipment at cost	165000
Investment at fair value	153000
Trading inventory	90500
Long-term loan: AKSA Bank	80000
Accumulated depreciation: Equipment	77320
Bank (overdraft)	25120
Trade receivables control	50550
Trade payables control	41540
Profit or loss before tax	195200
SARS (Income tax) (Dr)	70440

1. Additional information

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

1.2 There were no disposals of, or additions to the land and buildings and equipment during the financial year. On 31 October 2021 the land and buildings were revalued to R200 000 by Mr P Zulu, an independent sworn appraiser. The transaction has already been recorded.

1.3 The loan from C Carl is unsecured and the first instalment of R20 000 must be paid on 28 February 2023.

1.4 The actual SA normal income tax for the financial year amounted to R60 450 and must still be recorded.

1.5 A further distribution of R60 000 must be made to the members.

1.6 The long-term loan from AKSA Bank was obtained on 1 March 2021 at 15% interest per annum and is secured by a first mortgage bond over land and buildings. The capital amount of the loan must be repaid on 28 February 2028.

1.7 The loan to S Joels is immediately callable.

QUESTION 1

Which one of the following alternatives represents the correct amount that must be disclosed as total balance in the statement of changes in net investment of members on 01 March 2021.

A. R436 000

B. R476 000

C. R516 000

D. R370 000

QUESTION 2

Which one of the following alternatives represents the correct amount that must be disclosed as profit for the year in the statement of changes in net investment of members on 28 February 2022.

A. R200 750

B. R195 200

C. R124 760

D. R134 750

QUESTION 3

Which one of the following alternatives represents the correct amount that must be disclosed as total distribution to members in the statement of changes in net investment of members on 28 February 2022.

A. R60 000

B. R128 000

C. R93 000

D. R68 000

QUESTION 4

Assuming that the profit for the year was R130 000, Which one of the following alternatives represents the correct amount that must be disclosed as closing balance of retained earnings in the statement of changes in net investment of members on 28 February 2022.

A. R130 000

B. R68 600

C. R66 600

D. R195 200

QUESTION 5

Which one of the following alternatives represents the correct amount that must be disclosed under non-current liabilities in respect of loan from member in the statement of changes in net investment of members on 28 February 2022.

A. R20 000

B. R60 000

C. R80 000

D. R40 000

QUESTION 6

Which one of the following alternatives represents the correct amount that must be disclosed under current liabilities in respect of loan from member in the statement of changes in net investment of members on 28 February 2022.

A. R 80 000

B. R 0

C. R 20 000

D. R 60 000

QUESTION 7

Which one of the following alternatives represents the correct classification of loans from members in the accounting records of a closed corporation (CC) according to the closed corporation act No.69 of 1984.

A. Liabilities

B. Incomes

C. Assets

D. Expenses