The following trial balance was extracted from the books of Mandlacoal Ltd (Mandla), a manufacturer of charcoal for the year ended 30 June 20.20:

		DR	CR
	Note	R	R
Ordinary share capital (300 000 shares)	1		1560000
12% Cumulative preference share capital (50 000 shares)	1		150000
Retained earnings 1/7/20.19			75000
10% Secured debentures	2		300000
Trade and other payables	3		51000
Accrued interest on debentures 1/7/20.19	2		?
Bank		63000
Provisional tax payments		75000
Land and buildings	6	1 482 000
Plant and machinery, at cost	7	960 000
Motor vehicles, at cost	7	471 600
Accumulated depreciation
- Buildings (1/7/20.19)	6		96000
-Plant and machinery	7		192000
- Motor vehicles (1/7/20.19)	8		111000
Inventory		237000
Trade and other receivables		66900
Net income for the year ended 30 June 20.20 (before adjustments 1 to 9)			844500
Preference dividends paid		900

Interest on debentures paid ?

1) The authorised share capital consists of 500 000 ordinary shares and 500 000 12% cumulative preference shares.

2) Mandla issued the secured debentures on 3 July 20.11. The debentures are redeemable from 3 July 20.19 with an annual payment of R30 000. A mortgage bond secures the debentures over land and buildings. The effective rate of the mortgage bond and the coupon rate of the debentures are the same. Interest is payable six-monthly on 3 January and 3 July. Mandla only accounted for the cash payment of interest on the loan.

3) Included in accounts payable is an amount due to a foreign creditor. Mandla purchased inventory from an Indian supplier on 15 May 20.20 for INR 20 000. Mandla recorded the transaction correctly on 15 May 20.20. The exchange rates were as follow:

DATE	1INR =?ZAR
15 May 20.20	0,24457
15 May 20.20	0,23250
30 June 20.20	0,22986

4) Taxation for the year has been estimated to be R97 200, and must still be accounted for.

5) The directors have resolved to declare the preference dividends and a dividend of 50c per share on ordinary shares.

6) Land and buildings consist of a factory and offices that are situated at Erf 131, Bloemfontein and were acquired on 3 July 20.11 for R900 000. The cost of the land at that date was R300 000. On 30 November 20.19 extensions to the buildings were completed and recorded. Depreciation on buildings at 2% p.a on the straight line method must still be accounted for.

7) On 1 September 20.19, certain plant with a cost price of R90 000 and a carrying amount at that date of R48 000 was sold and the transaction was correctly recorded. The remaining plant has a useful life of 2 000 000 machine hours. The total machine hours worked up to 30 June 20.20 was 660 000 hours.

8) On 1 October 20.19, a new vehicle with a cost price of R300 000 was purchased and recorded. Depreciation on the vehicles still has to be accounted for at 25% per annum on cost. On 1 July 20.19 the residual value of the vehicles on hand was R20 000 and R30 000 for the new vehicle.

9) Ignore the effect of all forms of taxes.

Requred Pad	MARKS
a)Prepare the Statement of Changes in Equity (only the retained earnings column) of Mandla for the year ended 31 December 20.20	27
Show only the following items as it will appear on the statement of financial position of Mandla for the year ended 30 June 20.20: Issued share capital Trade- and other payables Dividends payable	8
c)Prepare the note for long-term loans to the statement of financial position of Mandla at 30 June 20.20. No comparative amounts or accounting policy notes are required.	5
TOTAL MARKS	40

Answers are to comply with International Financial Reporting Standars(IFRS's) and Company's act. Show all your calculations. Calculate all amounts towards the nearest Rand.