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The following trial balances were obtained from the financial records of Flix Ltd ('Flix') and Toons Ltd ('Toons') for the financial year ended 31
The following trial balances were obtained from the financial records of Flix Ltd ('Flix') and Toons Ltd ('Toons') for the financial year ended 31 December 2021: Final Trial balances Flix Ltd R Toons Ltd R DR CR DR CR Ordinary Share capital (R1 2 000 000 100 000 each) Retained earnings: 1 January 251 392 233 882 2021 Ordinary dividends declared Trade and other payables Debentures 100 000 275 000 130 000 94 878 Shareholders for dividends - ordinary Property, plant, and equipment 615 700 760 220 Trade and other receivables (including debentures in Flix) 395 000 302 018 Investments (including investment in Toons) Revenue Other income Other expenses Finance costs (including the interest on debentures) Income tax expense 100 000 2 766 510 2 750 000 125 000 1 200 000 45 058 1 258 714 412 508 10 036 450 310 5 496 270 5 496 270 1 500 232 694 1 808 940 1 808 940 On 1 January 2019, Flix acquired 30% of the ordinary share capital of Toons for R70 000 and thereby obtained significant influence over Toons on that date. The share capital of Toons on 1 January 2019 was R100 000 and retained earnings was R120 000. All of Toons' assets and liabilities were considered to be fairly valued on this date.
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