The information relates to the questions below:

Harry and Megan are members of a close corporation trading as H&M CC. The CC operates in the hospitality industry. The information below pertains to the business activities of the close corporation for the year ended 31 March 2023.

1. EXTRACT OF BALANCES AS AT 31 March 2023:

	R
Member's contributions	2,821,394.00
Retained earnings (1 April 2022)	209,903.00
Fixed deposit	150,000.00
Vehicles (at cost)	980,000.00
Accumulated depreciation: Vehicles (1 April 2022)	217,700.00
Buildings	3,000,000.00
Accumulated depreciation: Buildings (1 April 2022)	196,800.00
Land	1,002,700.00
Equipment (at cost)	331,400.00
Accumulated depreciation: Equipment (01 April 2022)	124,300.00
Trade receivables control	446,200.00
Allowance for credit losses	7,000.00
Prepaid expenses	17,500.00
Allowance for settlement discount granted	9,100.00
Long-term loan: Time Bank	1,117,400.00
Loan to Harry	80 500
Loan from Megan	350,000.00
Trade payables control	669,600.00
Profit for the year (before year-end adjustments)	256,302.50

2. Additional information

2.1. The fixed deposit in Time bank matures on 31 December 2025.

2.2. On 01 April 2022, the entity admitted a new member William for a contribution of cash amount of R110 000 and equipment valued at R40 500. This transaction is yet to be recorded.

2.3. The long-term loan from Time Bank was granted on 1 December 2021. The loan is secured by a first mortgage over land and buildings and is repayable in 6 equal annual instalments together with interest, with the first instalment on 1 December 2023.

2.4. All loans to members are immediately callable whilst the loan from Megan is repayable in full on 30 November 2024.

2.5. Investments consist of:

Long term - Investment in Diana (Pty) valued R110 000

Short term - 3 000 shares in Elizabeth (Pty) Ltd at R100 000. These shares were trading at R45,00 on 31 March 2023.

2.6. A vehicle with a cost price of R170 000 was sold for R40 000 cash on 30 November 2022. The accumulated depreciation on the vehicle amounted to R78 000 on 30 November 2022.The accountant of the CC neglected to record the sale.

2.7. A telephone statement of R8 300 from Telkom relating to March 2023 was received on 2 April 2023.

2.8. Depreciation for the year which must still be provided for was correctly calculated as follows:

Buildings R134 000

Equipment R53 600

Vehicles R61 000

Which one of the following alternatives represents the correct carrying amount for land amount that must be disclosed in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 1 002 000

b.

R 2 896 100

c.

R 1 002 700

d.

R 1 007 200

Clear my choice

Question 47

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct share investmentamount that must be disclosed under current assets in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 135 000

b.

R 0

c.

R 110 000

d.

R100 000

Clear my choice

Question 48

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct share investmentamount that must be disclosed under non-current assets in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 0

b.

R 97 000

c.

R 110 000

d.

R 100 000

Clear my choice

Question 49

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct prepayments amount that must be disclosed in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 12 000

b.

R 15 200

c.

R 17 500

d.

R 12 500

Clear my choice

Question 50

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct long-term loan: Time Bank amount that must be disclosed under non-current liabilities in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 1 117 400

b.

R 900 000

c.

R 1 114 700

d.

R 931 167

Clear my choice

Question 51

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct long-term loan: Time Bank amount that must be disclosed under current liabilities in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 931 167

b.

R 1 117 400

c.

R 186 233

d.

R 214 700

Clear my choice

Question 52

Not yet answered

Marked out of 3.00

Flag question

Question text

Which one of the following alternatives represents the correct members contributions amount that must be disclosed in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 2 971 894

b.

R 2 243 700

c.

R 2 031 394

d.

R 2 821 394

Clear my choice

Question 53

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct trade and other payables amount that must be disclosed in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 669 600

b.

R 666 900

c.

R 677 900

d.

R 648 400

Clear my choice

Question 54

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct carrying amount for buildings that must be disclosed in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 2 896 100

b.

R 3 000 000

c.

R 2 896 000

d.

R 2 669 200

Clear my choice

Question 55

Not yet answered

Marked out of 4.00

Flag question

Question text

Which one of the following alternatives represents the correct carrying amount forequipment that must be disclosed in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 194 000

b.

R 331 400

c.

R 247 600

d.

R 153 500

Clear my choice

Question 56

Not yet answered

Marked out of 4.00

Flag question

Question text

Which one of the following alternatives represents the correct carrying amount for vehicles that must be disclosed in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 779 300

b.

R 762 300

c.

R 609 300

d.

R 701 300

Clear my choice

Question 57

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct fixed deposit amount that must be disclosed under current assets section in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 150 100

b.

R 120 000

c.

R 130 000

d.

R 0

Clear my choice

Question 58

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct fixed deposit amount that must be disclosed under non-current assets section in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 150 000

b.

R120 000

c.

R 0

d.

R 130 000

Clear my choice

Question 59

Not yet answered

Marked out of 3.00

Flag question

Question text

Which one of the following alternatives represents the correct trade receivablesamount that must be disclosed in the statement of financial position in the statement of financial position of H&M CC as at 31 March 2023?

a.

R 439 200

b.

R 389 000

c.

R 430 100

d.

R 446 200

Clear my choice

Question 60

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following statements represents the correct disclosure of loan to member: Harry in the statement of financial position of H&M CC as at 31 March 2023?

a.

the loan is disclosed as part of partners current accounts

b.

the loan is deducted from the loans from partners

c.

the loan is disclosed separately under non-current assets

d.

the loan is disclosed separately under current assets

e.

the loan is disclosed as part of trade and other receivables

Clear my choice

Question 61

Not yet answered

Marked out of 2.00

Flag question

Question text

Which one of the following alternatives represents the correct loan to membersamount that must be disclosed under non-current assets in the statement of financial position of H&M as at 31 March 2023?

a.

R 62 700

b.

R 0

c.

R 350 000

d.

R 80 500

Clear my choice